Stocks Suffer Worst Week Since Lehman Despite Biggest Fed Bailout Ever
This has been the sharpest market selloff in history…
This was the worst week since Lehman (and worst 4 weeks since Nov 1929) for The Dow Jones Industrial Average…(Dow was down 18% during the Lehman week and 17.35% this week)
Despite The Fed gushing a stunning $307 billion into the markets – almost double its previous biggest liquidity injection (in March 2009)…
Maybe it was the ‘stock’ and not the ‘flow’ after all…
Stocks still have a long way to go to erase all the delusion (compared to actual profits)…
And if you think stocks already fell too much, think again… Total market cap to GDP is just now retesting the peak of the housing bubble levels!
As @TaviCosta notes, “This puts into perspective… We truly were at absurd valuations.”
Never Forget!!
Chinese markets are mixed since the Wuhan flu began with tech-heavy super-leveraged ChiNext still green as the the megacaps get pummeled…
In Europe, “Whatever it takes” wasn’t enough…
Nasdaq remains notably higher since President Trump’s inauguration, S&P is barely higher but The Dow, Transports, and Small Caps are all underwater now (the latter two crushed)…
And US stocks are testing a serious trendline…
S&P 500 broke the post-crisis uptrend dramatically…
With the Median US Stock down over 50% from its highs…
