The Fed’s Deal with the Devil – Ep. 428
The Peter Schiff Show Podcast - A podcast by Peter Schiff
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NASDAQ Now in Bear Territory
It was a big down day, in fact there was even more carnage in the NASDAQ. Today is the day that NASDAQ finally slipped into bear market territory. So, Wall Street's been calling this a correction the whole way, well now the NASDAQ is down 22%, joining the Russell 2000, down 26% and the Transports down 24%. Those 3 indexes are now officially in bear markets.
It's All a Matter of Time
But what does that mean? That means when the NASDAQ was only down 5%, it was in a bear market. That's exactly what I was saying. They don't acknowledge the bear market until it's down 20%, but that doesn't mean it's not in a bear market. It just means nobody wants to admit that it's a bear market. Now we still have 2 indexes that are not in bear markets, the S&P 500 is now down almost 18% and the Dow Jones is down just under 17%. So Wall Street maybe can cling to the notion that these indexes are not in bear markets because they're not down 20%. Look, it's all a matter of time. As I said on the last podcast, I thought that the NASDAQ would be in a bear market by the end of the week and that's exactly what happened, and I'm pretty sure that the S&P 500 and the Dow are going to join this party before the end of the year.
Huge Bear Market in FAANG Stocks
Today's decline started off as a rally. The Dow was up about 400 points this morning, before it collapsed. So we basically reversed yesterday's decline and then we got clobbered and took out new lows. The NASDAQ was down 3%. That was the weakest index, and it was led down by the FAANG stocks, which are now down collectively, on average, 35%. This is just generally in the last few months. So this is a huge bear market in the FAANG stocks. The worst of the FAANG's is Facebook, which was down big again today, like 5 of 6%. Facebook is now down 43%. Second place, is Netflix, down 42%, then Amazon down 33%, and lastly, Google, which is down only 23%. Google just finally went into a bear market this week. If you look at the charts, there is nothing but air - there is a long way down between where we are now and where any kind of trend lines or support lines could be drawn.
