Dow Jones Drop 800 Points in Stock Market
It was an abysmal day for equities, but it was more than anticipated. The market as a whole is overdue for a significant correction, especially when the amount of central bank “tools” and tricks in the past decade have been equally massive.
But it’s not improving all that much. Normally, the stock markets bounce back by about 40 – 50%of what it shed the prior day, but in the stock market today the Dow is presently fighting to finish in the black on the day.
Stock Market Fails to Make a Comeback
It’s becoming crystal clear the the Fed is going to have to slash interest rates further after their recent .25% cut was dismissed by anemic stock markets hungry for some real fiscal intervention.
We don’t have free market capitalism any longer. What we have is a croney capitalism and state socialism on its last leg, with a charade between President Donald Trump and J. Powell of the Federal Reserve.
Global Slowdown Undeniable
South Korea and Japan are engaged in trade disputes causing a major drop in year-over-year Japanese auto sales in Korea. At the same time India suffered its worst month for car sales in a year and a half, and as many as 1 million workers may be laid off as a result.
Meanwhile, gold continues to soar making it one of the best investments in 2019. With the shiny yellow metal above 15 hundred dollars/oz for the first time in half a decade and setting records in many currencies like the Canadian dollar and the rupee, gold and silver are worthy of recognition with so few other choices for your retirement fund.