Called 2 Action - The Dow Plunges Over 1,000 Points!
Show Notes:
David appears at the beginning of the show
- A fun fact on the Super Bowl rings, the average ring costs over $35,000.
- The Dow Jones went down 1175 this last Monday.
- This is one of a series of corrections that will happen.
- There are a few different bubbles, the 2 major being equities and the bond market.
- The fundamentals support a raise in the equities market before a major correction.
- This recent drop was due to overvaluing of stocks (Market has increased over 7% in a year which is unheard of) and fears of inflation due to an increase in salaries.
- The Fed also had a role in the sell off. Bull markets seem to be tested when leadership changes hands. Jerome Powell officially took over as Chairman replacing Janet Yellen. Yellen alluded to the bubble and over-valuation in recent comments.
- The Fed is looking to unwind their balance sheet and sell off holdings in US treasuries.
- For more including why hasn't gold increased with the stock market sell off, listen to the full interview.