Here’s a little bit of financial apocalypse news to brighten your Tuesday morning: the Dow Jones Industrial Average has plummeted by 1,175 points, its biggest single-day drop in history.
In conjunction with a massive drop on Friday, that adds up to a frankly huge 1,800 point shortfall – meaning that all the Dow Jones gains in 2018 are gone. It is entirely possible that Trump forgot to touch wood after making this tweet.
The Fake News Media barely mentions the fact that the Stock Market just hit another New Record and that business in the U.S. is booming…but the people know! Can you imagine if “O” was president and had these numbers – would be biggest story on earth! Dow now over 25,000.
— Donald J. Trump (@realDonaldTrump) January 5, 2018
There are a number of reasons this has happened, but the one everyone’s pointing to is an uncommonly fast rise in interest rates, leading to expectations of inflation and a surge in bond yields.
Some argue that a drop in oil prices and bitcoin on Monday also may mean people are less inclined to put their money into high-risk assets at the moment.
The Australian stock market is following Wall Street, too. The ASX had its worst day since June 2017 yesterday, and all signs point to a 2.3 percent drop.
Is it time to crack open each others’ heads and feast on the delicious goo inside? Probably not – but I’m not going to tell you what you can and can’t do. We’ll keep you posted.