{"id":39835,"date":"2018-10-29T06:05:05","date_gmt":"2018-10-29T11:05:05","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39835"},"modified":"2018-10-29T06:05:05","modified_gmt":"2018-10-29T11:05:05","slug":"why-i-think-the-ugly-october-in-stocks-is-just-a-preamble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39835","title":{"rendered":"Why I think the Ugly October in Stocks Is Just a Preamble"},"content":{"rendered":"
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Why I think the Ugly October in Stocks Is Just a Preamble<\/a><\/h3>\n<\/header>\n
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Yet, the crybabies on Wall Street are already clamoring for the \u201cPowell put.\u201d<\/strong><\/p>\n

Let me just say right up front: The stock market did not \u201ccollapse.\u201d It has experienced a sell-off that made some people\u2019s ears ring, as sell-offs normally do, and October has been ugly so far, but it wasn\u2019t a \u201ccollapse.\u201d<\/p>\n

This matters because the crybabies on Wall Street are already clamoring for the \u201cPowell put.\u201d But the folks at the Fed have been around, and they know what a routine sell-off looks like and what a crash looks like, and they\u2019re glancing at these numbers, and they yawn. Because in the grander scheme of things, not much has happened yet. The next uptick lurks around the corner, powered by the dip buyers and massive corporate share-buybacks.<\/p>\n

After the dotcom bubble, the Nasdaq plunged 78%. Wave after wave of dip buyers were rewarded with small goodies and then taken out the back and shot. Many companies disappeared entirely. That was an example of a collapse<\/em>. That\u2019s when the Fed got nervous.<\/p>\n

Today there are only some segments that have gotten hit very hard, though it\u2019s still no collapse, and we\u2019ll get to a few of them.<\/p>\n

<\/ins>The Dow<\/strong> was well-behaved. It fell about 3% for the entire week and is about flat year-to-date. Nothing special. The Dow is only 8.4% off its peak. And compared to a year ago, it\u2019s still up 5.4%.<\/p>\n

It\u2019s not a crime for stocks to be flat year-to-date. Stocks might actually be down for the year, and they might be down for years<\/em>. But people have forgotten, and younger people have never experienced it in their life, after a decade of blatant market manipulations by central banks that have created this centrally planned Everything Bubble that is now \u201cgradually\u201d deflating.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Why I think the Ugly October in Stocks Is Just a Preamble Yet, the crybabies on Wall Street are already clamoring for the \u201cPowell put.\u201d Let me just say right up front: The stock market did not \u201ccollapse.\u201d It has experienced a sell-off that made some people\u2019s ears ring, as sell-offs normally do, and October […]<\/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":[303,1849,22656,2443,3650,860,4254,4255],"class_list":["post-39835","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-financial-markets","tag-powell-put","tag-stock-markets","tag-us-federal-reserve","tag-wall-street","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39835","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=39835"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39835\/revisions"}],"predecessor-version":[{"id":39836,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39835\/revisions\/39836"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}