Stocks rebounded Monday after their precipitous fall late last week. The Dow Jones rose 669 points. Then on Tuesday, it tanked again, falling over 300 points.
In his latest podcast, Peter Schiff said the increase in stock market volatility is another sign things are different. He reiterated what he said last Friday. He thinks we are in a bear market. All of the flashing warning signs are there. It’s just that nobody can seem to see them.
It turns out Friday’s 666-point Dow Jones plunge was just a prelude. On Monday, the Dow suffered its largest-ever drop in terms of points. It was down 1,600 at one point and ultimately lost 1,175.21 points, a 4.6% decline. According to Reuters, declines for the benchmark S&P 500 index and the Dow Jones Industrial Average were the biggest single-day percentage drops since August 2011. Monday’s crash ranks in the top-20 of all time Dow Jones drops in percentage terms.
Peter Schiff actually predicted a Monday crash in his podcast last Friday. Yesterday, he took to the microphone again, noting that even with the precipitous fall in the stock markets, the mainstream “fake financial news” remains clueless.
The Dow Jones suffered its biggest one-day drop since August on Tuesday, falling 363 points. The Dow has lost 540 points in two days, the biggest decline since September 2016.
According to analysts quoted by CNN, fear of a tanking bond market is one of the main factors behind the stock market dip.
The bond market has been selling off lately. That’s raising fears that the era of extremely low bond rates — which has been very good to the stock market — could soon be over.”