Stock prices were obscenely high and many investors were massively overleveraged.  The Dow Jones Industrial Average plummeted by more than 1,000 points on Monday, and stock prices are still obscenely high and many investors are still massively overleveraged.  During the days ahead, we are going to see some wild ups and some wild downs, and this tragedy is going to take some time to fully play out.  But without a doubt, we have got a major problem on our hands.

After the chaos that we witnessed on Friday, I wasn't sure that we would see even more carnage on Monday, but that is precisely what transpired…

The Dow Jones Industrial Average declined 1,033.99 points, or 2.6%, to close at 38,703.27. The S&P 500 fell 3%, ending at 5,186.33. Both averages notched their worst daily losses since September 2022.

The tech-heavy Nasdaq Composite shed 3.43%, finishing at 16,200.08.