Last Monday’s drop is now second place in percentage loss. However, it is the new historic point loss in a string of huge recent losses that have the market down 32 percent, or more than 9000 points off its February 12 high of 29551.
- A massive economic slowdown is beginning and will likely continue for several months. Unemployment will soar and it will affect all aspects of the public and private sector revenue.
- The market run-up since 2017 has been based on super low interest rates, massive stimulus (tax cuts and spending) and huge debt. It has significant vulnerabilities.
- The bull market began in March 2009 and is now one of the longest in history. A typical bull market lasts 8.5 years. This was near 11 years (132 months).
- The nationalist policies promoted by the Trump administration and other countries are damaging trading relationships and international trade volumes have been declining for months.
- The leading economies of the world – the U.S., China and the EU – have been slowing since last year.