I thought it would be a War in the mid-east that would get the dominoes falling. Turned out a real black swan. However much many think that the US stock market was on solid foundation, false premise. The underlying instabilities that caused 2008 crash never went away.
Injection of trillions, low Fed Interest rates almost free (now zero rates, i.e free) helped the stock market soar and insiders to take their money of the table. Middle class Tax payers, Pension funds, the small retail stock buyers are left holding the bag.
I expected a probable drop to 20K and a somewhat probable to 15K. The collapse and drop even surprises me, and other skeptics. Now even 15K seems highly probable. Thats why I say read alternative media, like ZeroHedge, RT and Unz (aka Fake news) to see the other side of the spin.
When Boeing management said it was the fault of foreign pilots (in other words non white) spelt their own doom. I said Boeing should drop below 100, I did not expect this fast. Hedge fund operated Boeing, cutting corners to maximize profits. Stock buybacks, were the norm to push up stock price. Investment in safety measures, research and development, was not part of management decisions.
Maybe Trump will inject money into Boeing to get the stock price up. The insiders will sell. Retail idiots who believe Boeing is a great American Company will buy, not knowing Hedge Funds, Bezos and the like are not real Americans, i.e. those who care about the deplorables and others.
Now Trump, like the Boeing guys wants to deflect his responsibility, saying racist Chinese Virus. I think going to end much like the Boeing management.
Unhappily for the US, the alternatives in leadership are equally horrible. Biden another Trump probably worse, in the stages of Dementia and will be a puppet. If Sanders is able to get the nomination (anyone opposing Trump will win), he will be blocked by his own party the Democrats.
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When Raghuram G. Rajan or Satyajit Das write I sit up and read and re-read carefully.
Dow Jones (DJI)