Has the long expected and inevitable crash finally arrived? From James Rickards at dailyreckoning.com:
“Most people think today will be like yesterday,” Daily Reckoning co-founder Bill Bonner says…
“But every now and then, today is NOT like yesterday. Something changes, something goes off the rails, there’s a paradigm shift.”
We may be facing such an inflection point right now. Today, I’ll show you why, and what’s at stake.
The stock market selloff that began late last week intensified today. The Dow lost another 1,033 points (2.6%) while the S&P lost 160 (3.0%). Percentage-wise, the tech-centric Nasdaq was hardest hit, losing 576 points (3.43%). At one point this morning, it was down over 1,000 points, which has never happened before intraday.
Market darling Nvidia, which has largely driven the overall market this year, is down about 25% from its recent high.
Meanwhile, fear is spiking as the VIX (the volatility gauge) has reached its highest level since the early days of the COVID pandemic.
Today’s rout started in Japan while most Americans were asleep. The Nikkei index plunged 12% today, its worst day since Wall Street’s “Black Monday” in 1987. That’s a crash by any definition.
The Nikkei’s crash then spread around the world to China, India, the Middle East and Europe.
Worse Than a Crash?
We’re not at crash levels in the U.S. (yet). What happened today is a big deal, but it bears no comparison to October 1929 when the stock market fell 21% over two days or October 1987 when the stock market fell 21% in one day.
That said, we may be in for something worse than a crash. We may be in for a long, slow grind to a new bottom that could be down 70% or more from the top (around, say, Dow 12,000).
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The rich have the luxury (?) of bending the world to their delusion(s) but it may not end well for them.
This playing with other people’s lives regarding WAR, econ, reset leaps forward.
More for them, less for us. (H/T-GC)
Why so greedy?
Sounds like the AC/DC classic If You Wan’t Blood You’ve Got It!
Breaking from Six Feet Under:
The Art Of Headhunting