The ingredients of a Perfect Financial Storm in no particular order:

1. Europe

2. China (slowing growth, possibility of a hard landing)

3. Unsustainable profit margins of U.S. corporations; over-valued U.S. stock market

4. World-wide recession in 2013

5. Continued & extreme political dysfunction in the United States

6. Iran/Israel/United States (possibility of war).

7. Derivatives

8. Wide-spread but misguided belief that central banks can fix all things.

Even though our markets have corrected sharply I remain bearish. No doubt we will see strong rallies. But I think they are bound to fail. In any case, I see little reason to be long stocks. (Your cash, by the way, will probably be gaining in value due to strong deflationary forces around the world.)