Is Bad Economic News Finally Weighing on Stocks? – Ep. 64

  • Near 300 point drop in the Dow
  • NASDAQ down 118
  • S&P down 30 points
  • $1.50 gain in oil and oil stocks up
  • No significant economic news that would trigger this move
  • Dollar was not down much lower on day
  • The 110 level is holding back the euro
  • Expectations that the euro will roll over on higher U.S. interest rates kept the dollar up
  • A weak stock market is bad for the dollar and good for gold because the Fed is likely to not raise interest rates or launch QE4
  • The only way the Fed can prevent a correction from turning into a bear market is by launching QE4
  • The Fed has built this “recovery” on asset bubbles
  • Launching QE3 guarantees QE4
  • The only thing that will stop perpetual stimulus is a currency crisis
  • Durable Goods Orders were estimated at .7% gain
  • Actual number came in at a 1.4% decline
  • Five consecutive monthly declines in Durable Goods X Transportation
  • The last time that happened was during the months surrounding the 2008 financial crisis
  • The U.S. economy today is the weakest it has been since the depth of the 2008 financial crisis
  • The final revisions to Q4 GDP due on Friday are estimated to go down
  • There’s a good chance the number will be lower than 2%
  • Pundits are making excuses, saying that the “First quarter
    s always weak” or “It’s the weather”
  • They don’t want to come to terms with reality