I went to lunch with my “rainman” friend Howard.  He is an aerospace guy with an MBA and really ought to be running a division of this company.  He sees the big picture and can wrap his mind around a lot of data and come up with an encompassing solution.

I asked him about what is going on in the markets after telling him a little about the schemitah phenom.  He said that he knew the correction was coming because of what was going on with the VIX (the insurance that brokers buy to protect their portfolios from damaging loss).  If you seen activity on this indicator, you know something big is coming.  Here is a chart of the latest:

http://ift.tt/1Kob6aw

It shows a REALLY nice spike in 1987 on that schemitah year.  Again, it showed big (lots of volatility) in the 2001 schemitah year and again in 2008, there was a nice spike.

Here is what the markets did in 2001 and 2008.  Imagine the plunge that is coming in 2015…..:

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