![]() ![]() Fed policies created the largest housing bubble in our history, but now that bubble is bursting. The same thing is true for the housing market. The Federal Reserve giveth and the Federal Reserve taketh away. Since then, Microsoft shares have plunged 33.4%, to $232.90, the lowest closing price since March 2021.Īs I discussed a few days ago, the wealthiest tech tycoons have collectively lost 315 billion dollars over the past year. On the list of best-timed insider trades ever, he must be at the very top. The Nasdaq closed at 10,576, down 34.8% from its intraday high on November 22, the very day Microsoft CEO Satya Nadella dumped 50.2% of his Microsoft stock in a bunch of frenzied trades, totaling $285 million. The Russell 2000, which tracks small-cap stocks, is down 31.8% from its high on November 5, having thereby maintained its function as early warning signal. The S&P 500 Index closed on Friday at 3,586, down 25.6% from its intraday high on January 3, and where it had first been in November 2020. Here in the United States, all of the major stock indexes have fallen for three quarters in a row, and tech stocks have been leading the way down… When the Federal Reserve and other central banks around the world took the punch bowl away, it was obvious that something like this would happen.Ĭentral bank intervention pushed global financial markets to absolutely absurd levels, and there was no way that they could remain there once the artificial support was removed. So we are talking about an amount of money that is roughly twice as large as our GDP for an entire year. The total value of all goods and services produced in the United States last year was approximately 23 trillion dollars. That is an amount of money that is difficult to comprehend. The combined collapse in global stock and bond markets means global market capitalisation has been slashed by over $46 trillion. ![]() They calculate the 20% plus losses suffered by government debt investors over the last year are now a par with the post World War I and II years of 19, and the Great Depression rout of 1931. ![]() Stocks have been falling and falling and falling, and Bank of America is warning that this is one of the worst global bond market crashes that we have ever seen…Īnalysts at BofA liken it to going “Cold Turkey” and blame it for causing the third “Great Bond Bear Market.” When I first came across that number I could hardly believe it. The massive drawdown has led to forced liquidations on Wall Street, the bank’s chief investment strategist Michael Hartnett said in a Friday note, highlighting the recent break below 2018 support in the NYSE Composite Index. It’s been a tough year for investors, with global stock and bond markets erasing $46.1 trillion in market value since November 2021, according to Bank of America. According to Bank of America, a whopping 46.1 trillion dollars in financial wealth has already been wiped out since last November… And when we look at the bigger picture, it becomes exceedingly clear that we are in the midst of a historic worldwide market crash. ![]() But in order to understand what is really going on we need to step back and look at the bigger picture. When there is a good day like we saw on Monday, sometimes that can fool us into thinking that everything is going to be okay. If that isn’t a “crash”, how would you define one? Since last November, stocks and bonds have been plunging all over the globe. In less than one year, 46 trillion dollars in financial wealth has been wiped out. ![]()
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