When America’s airlines stock went into the stratosphere, the next wave could be on the horizon
The stock market has been in free fall for several years now, and it’s only getting worse.
The S&P 500 is down more than 8% this year.
That’s the biggest percentage drop since February.
The Nasdaq is down nearly 13% this month.
The Dow is down almost 6% this cycle.
In the stock market’s most recent six-month high, the Nasdaq was up 554 points on October 29, 2014, but that was just a week before the economic crisis.
Now, the S&s are down 757 points.
That’s a loss of almost 4.5% in six months.
The Nasdaq has lost nearly 3% in that same time frame.
For the first time in nearly three years, the Dow is off the 10,000 mark for the first straight day, the Nikkei 225 is down 5% and the Shanghai Composite is down just 4.7%.
But there’s good news: The S&ams are in a bubble.
Just as stocks were once on the rise and now are falling, the bond market is beginning to recover, even as Wall Street keeps hitting the brakes on the big gains.
The Fed is expected to raise interest rates in the near term.
But the Fed is doing so for the short term.
It is trying to keep the markets from going into an inflationary spiral, and its plan will require that the U.S. economy grow to 2% growth by 2022, an objective that has eluded the Fed.
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