How a Single Word from the Fed Can Wipe Out Markets

Jon Economy, Energy, Fiscal Policies, Market Commentary

The Committee to Destroy the World opened is hydra-headed mouth one too many times last week.
The result was the biggest drop in stocks since Brexit.
The Dow Jones Industrial average fell nearly 400 points or 2.1% on Friday while the S&P 500 dropped nearly 54 points or 2.5% and the Nasdaq Composite Index also shed 2.5% and nearly 134 points.
What was the monumental news that finally rattled investors?
Was it the latest nuclear test by North Korea, which experts now believe could have the ability to reach the U. S. mainland with nukes by 2020?
Was it the overt disrespect shown to President Obama by Chinese and Philippine leaders?
Was it weeks of lousy economic data?
Or the prospect of the most depressing presidential choice in generations?
Turns out it was nothing of the sort…

This post was published at Wall Street Examiner by Michael E. Lewitt ‘ September 11, 2016.