by Jeff Berwick, Dollar Vigilante:
The Dow plummeted 367 points on Friday in its biggest drop since September.
Did you notice? Hope so.
It was the biggest drop since September and when you add it all up, 2015 has been the most volatile year for averages since 2008. In fact, if you add it up, the Dow has just managed to shed over 600 points in two days.
The reason for the sell off supposedly has to do with radically lower oil prices hitting the bottom lines of major banks with considerable energy leverage. Maybe so. Or maybe it was the result of the Fed’s recent rate hike.
Now here’s a question for you. Are you a TDV newsletter subscriber yet?
If you are a regular or even irregular reader of this blog, you’ll recall our now-famous Shemitah prediction that called for significant market volatility in the fall as well as geopolitical and economic tumult.
Everything has happened just as we suggested. I wasn’t just right about market averages. I was right about the entire world situation.
And worse is to come. When it comes to markets, Janet Yellen is not stopping yet.
It took Janet Yellen (and before her Helicopter Ben Bernanke) seven years, to the day, to pull the trigger to raise rates from 0%. In the hours afterwards, the US stock market rose with relief as the world didn’t end the second rates were raised to 0.25%.
However, in the two days following, the Dow fell 252 points on Thursday and 367 points today for a two day wipe-out of 619 points.
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