{"id":16445,"date":"2016-01-14T06:44:16","date_gmt":"2016-01-14T11:44:16","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16445"},"modified":"2016-01-14T06:44:34","modified_gmt":"2016-01-14T11:44:34","slug":"the-dow-falls-another-364-points-and-we-are-now-down-2200-points-from-the-peak-of-the-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16445","title":{"rendered":"The Dow Falls Another 364 Points And We Are Now Down 2200 Points From The Peak Of The Market"},"content":{"rendered":"
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The Dow Falls Another 364 Points And We Are Now Down 2200 Points From The Peak Of The Market<\/a><\/h3>\n<\/div>\n
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\"Falling<\/a>It was another day of utter carnage on Wall Street.\u00a0 The Dow was down another 364 points, the S&P 500 broke below 1900, and the Nasdaq had a much larger percentage loss than either of them.\u00a0 The Russell 2000 has now fallen 22 percent from the peak, and it has officially entered bear market territory.\u00a0 After 13 days, this remains the worst start to a year for stocks ever, and trillions of dollars of stock market wealth has already been wiped out globally.\u00a0 Meanwhile, junk bonds continue their collapse.\u00a0 JNK got hammered all the way down to\u00a033.06<\/a>\u00a0as bond investors race for the exits.\u00a0 In case you were wondering, this is exactly what a financial crisis look like.<\/p>\n

Many of the \u201cexperts\u201d had been proclaiming that \u201cthings are different this time\u201d and that stocks could defy gravity forever.<\/p>\n

Now we seeing that was not true at all.<\/p>\n

So how far could stocks ultimately fall?<\/p>\n

I have been telling my readers that stocks still need to fall about another 30 percent just to get to a level that is considered to be \u201cnormal\u201d be historical standards, but the truth is that they could eventually fall much farther than that.<\/p>\n

Just this week, Societe Generale economist Albert Edwards\u00a0made headlines all over the world<\/a>\u00a0with his prediction that we could see the S&P 500 drop by a total of 75 percent\u2026<\/p>\n

If I am right and we have just seen a cyclical bull market within a secular bear market, then the next recession will spell real trouble for investors ill-prepared for equity valuations to fall to new lows. To bottom on a Shiller PE of 7x would see the S&P falling to around 550.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Dow Falls Another 364 Points And We Are Now Down 2200 Points From The Peak Of The Market It was another day of utter carnage on Wall Street.\u00a0 The Dow was down another 364 points, the S&P 500 broke below 1900, and the Nasdaq had a much larger percentage loss than either of them.\u00a0 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1750,181,5983,6061,312,11690,6065,11691,1297,4901,1716,1138,2731,11692,9541,7554,11615,11693,11694,860,868,11432,11695,11696,11697],"class_list":["post-16445","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bear-market","tag-crisis","tag-economiccollapseblog","tag-financial","tag-financial-crisis","tag-financial-crisis-of-2016","tag-investors","tag-jnk","tag-junk-bonds","tag-michael-snyder","tag-sp-500","tag-stock-market","tag-stock-market-crash","tag-stock-market-crash-2016","tag-stock-market-wealth","tag-the-dow","tag-the-nasdaq","tag-the-peak-of-the-market","tag-the-russell-2000","tag-wall-street","tag-wealth","tag-what-is-coming-in-2016","tag-what-will-happen-in-2016","tag-what-will-happen-to-america-in-2016","tag-worst-start-to-a-year"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16445"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16445\/revisions"}],"predecessor-version":[{"id":16447,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16445\/revisions\/16447"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}