ECONOMIC CRASH LIKELY? Stock Market Insanity & Risk Reaching Nose-Bleed Levels

by Steve St. Angelo, SRSrocco:

With the Dow Jones Index falling 665 points today, the risk of a large market correction has just increased significantly.  Ironically, I discussed the very indicators that were setting up for a huge market correction in my newest video which I recorded on Tuesday.  Unfortunately, I wasn’t able to get the video posted on my Youtube channel on Friday morning and now on my website until late in the evening.

Regardless, the 665 point decline is just the beginning.  Oh sure, we could see a continued selloff and then a move towards 27,000 or even higher.  But, for the stock market to move up to 27,000 or 30,000 means absolutely nothing.  Well, maybe it provided investors with a brief feeling of higher wealth until the markets really crashed.

In my newest video, I provide some fundamental analysis and indicators of why the Stock Market is reaching totally unsustainable levels.  Also, I discuss what would happen with the gold and silver price during a big market correction.  And, it resembled what happened today in the markets.  The gold and silver price will initially selloff because most trades are done via algorithms.  Thus, when the markets crack by 665 points in one day, it does damage all across the board.

Furthermore, the gold and silver price are based on their commodity-price mechanism… and this is the cost of production.  So, if the price of oil declines, so will the gold and silver price… FOR A SHORT WHILE.  However, after the initial selloff, I see both gold and silver moving higher as the broader markets continue to decline.

I believe investors are quite worried about this 665 point decline in the Dow Jones Index, especially after it followed another 300+ drop earlier in the week.  But, the Dow Jones Index only fell 2.5% today.  That’s peanuts.  I see a 40-50% decline coming, and even lower.  That’s at least 10,000 point drop in the Dow Jones.  If investors rushed into gold because they were spooked by a 2,000 point decline in the Dow at the beginning of 2016, what happens with a 10,000 point decline??

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