Dow Jones Industrial Average
The Great Depression was the most severe economic depression ever experienced by the Western world. It was during this troubled time that the world’s most famous case of deflation also happened. The resulting aftermath was so bad that economic policy since has been chiefly designed to prevent deflation at all costs.
Ponzi schemes are as old as time.
The tendency for weakness following these dismal January’s is especially evident when contrasted with the median performance following all January’s, all “up” January’s, and even versus all “down” January’s.
Bad stuff tends to happen in bad markets. This includes volatility spikes. Thus, the presence of this recent 4-day roller coaster is perhaps a clue that our present market landscape is not a healthy one.
If the Wall Street Journal meant to reach for reassuring comfort, they fell far short. After spending late summer last year and into the fall proclaiming that manufacturing didn’t matter (12%), the newest round of talking points are “false positives.” In other words, manufacturing and industry does matter, after all, but just “not enough” to tip into full recession. Last year was supposed to be “the” year because of faith in only the BLS’ numbers. It was advertised as full deliverance of the promises of QE and ZIRP, but instead 2015 delivered only recessionary impressions.
Stocks are certainly much cheaper than they were a few weeks ago after the worst start to a new year in Wall Street history...But cheaper doesn’t necessarily mean cheap.
“Fed Chair Janet Yellen will be forced to either acknowledge labor market tightening as reason to continue with the four-hike schedule for 2016 or risk her credibility, belittle job market stability and sound a warning about the risks of lower oil prices and cheap gasoline (sacrilege to regular Americans) by slowing the hiking pace after a single 0.25 percent increase last month. If she gets it wrong, things could get ugly fast."
U.S. stocks logged the worst week ever to kick off a new year; is this historically low reading on the “January Barometer” a bad omen going forward?
An angry bear has been released after nearly seven years in hibernation, and the entire world is going to be absolutely shocked by what happens next.
"Some people are never too old to find new ways to lose money."
After getting hammered on the first trading day of 2016, what can we expect from the stock market?
A lot of people were expecting some really great things to happen in 2015, but most of them did not happen. But what did happen? A global financial crisis began during the second half of 2015 threatens to greatly accelerate as we enter 2016. This is what the early stages of a financial crisis look like, and the worst is yet to come.