Once again, the man who marinates the finest ice cubes in NYC nailed it. Art posits the possible reasons for today’s drubbing, which is most likely due to margin call selling and fund liquidations. Also, he delves into the Fed and how they will regret raising rates–because they’re jackasses and the Yellen Fed is driving this economy right into the fucking wall.
Regarding fund liquidations: I know it sounds crazy that 8 days into the trading year there could be funds closing down. The crux of the issue is the severity of this decline. Although the NASDAQ is off by 10%, the average stock is down a lot more than that. Couple that with a rather arduous 2015 and the conditions for mass redemptions is present and highly probable.
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I’d love to see the average small cap decline YTD.
http://money.cnn.com/data/markets/russell/
I’ll post data tonight
Just look at the russell 2000
FED never had any credibility in the first place. Nothing to lose. 100 years of history proves so.
Tell that to my Dr. Benjamin Bernanke picture hanging on my office wall.
All Benjamin did was compound the underlying/systemic problem/s.
But, he gets a Gold star on his forehead for effort.
Senor T, you’ll end up using that as Dart Board when all is said and done.
Don’t you dare talk bad about Saint Bernanke! I have a tattoo of him on both arms. He’s Santa Clause to your portfolio gains over the last few years and should be treated like a god!
Yellen is clearly Judas in this parable