The Dow Industrial Average took a dive on Thursday, dropping over 1,000 points, which means all the gains in 2018 are now gone. Here’s what the situation looks like:
10% Correction Levels:
- Dow 23954 – Dow closed at 23860 is in correction
- S&P 2585 – S&P closed at 2581 in correction
- Nasdaq 6755 – Nasdaq closed at 6777, not in correction
No bailout for tech companies — ever! pic.twitter.com/7Xtk1vqjrV
— MATT DRUDGE (@DRUDGE) February 8, 2018
This is what happens when the FED starts withdrawing some of the funny-money it poured into Wall Street since 2008/2009. Also, keep in mind that the stock market turmoil started last Friday, at the exact same time Janet Yellen was leaving her position as Federal Reserve chair, saying these eerie words:
Janet Yellen brought the curtain down on her time at the Fed with disappointment and a warning for the markets. She did say that U.S. stocks and commercial real estate prices are high, but stopped short of saying they’re in a bubble.
According to a CNBC analysis, S&P 500 companies have lost approximately two trillion (that’s 2,000 billion) in market capitalization since January 26th’s stock market high. It’s interesting that the sell-off in stocks on Thursday followed the great news with regard to US labor market, i.e. job claims are at their lowest level since 1973.
The truth is, the 10% correction was 3 years overdue, so we could be in for a 30% correction. Even if that happens, much of the markets valuations are still overdone. The less than 3% GDP numbers we’ve had over the last 10 years don’t make markets grow like they have. It’s all phony growth, due to the artificially low interest rates and quantitative easing, and everything is own by the Federal Reserve.
Here’s the guy who correctly predicted the 2008 market crash in a very recent interview with Infowars. Peter Schiff begins with warning Trump:
“Unfortunately, he is the fall guy. There’s no way to stop this”