The financial markets have been completely overvalued recently, and we were long overdue for the corrections that are being seen across all of the indexes lately. Panic has been hitting Wall Street, and it really comes down to moves that were made by the Federal Reserve.

Over the past few years, the Federal Reserve has been providing liquidity to the markets by way of 0% interest rates and quantitative easing, where they were printing $120B a month to buy items such as treasury bonds and mortgage bonds. What that did was keep the markets going higher because all of that money had to find a home somewhere.

Now that a reversal of all that spending has started, what can we expect next in the financial markets? Host Lou Scatigna, CFP® provides his insight in this segment from The Financial Physician.