Why are stocks tumbling (as in a little more than 2% below their all time high)? We decided to get the mainstream media's take.
Here is the answer [4]:
[5]
The article says:
The increased prospect that six years of near-zero borrowing costs in the U.S. may end next month rippled through global markets, as companies hurt most by the strengthening dollar led a selloff in American equities and bonds fell with emerging-market assets.... Global investors continue to adjust to the increased likelihood that America’s benchmark rate will rise this year, a move that would end an unprecedented era of record-low borrowing costs.
In other words, stocks are falling due to fear of a December rate hike.
Great, just one problem.
Here is what the same mainstream media said just 10 days ago, on October 28 [6]:
[7]
This article [6]said the following:
U.S. stocks ended sharply higher on Wednesday after a volatile session as the Federal Reserve gave a vote of confidence in the U.S. economy by signaling a December interest rate hike was still on the table.
Shorter version: stocks soared due to hope of a December rate cut.
So ten days ago, a December rate hike is why "stocks ended sharply higher", while today a December rate hike is the reason why "stock tumbles in global selloff."
And now you know.