Monday’s market wipeout devastates stocks as the price of gold surges to $1,470.
60% Probability Of A 1/2 Point Cut In September
August 5 (King World News) – Peter Schiff: “Thanks to today’s 850 point drop in the Dow, the markets are now pricing in a 60% probability of a 50 basis point Sept. rate cut. I wonder how many points the Dow has to fall before the markets price in a 100% probability of a 200 basis point rate cuts!”
The Real Reason For The Plunge In Stocks
Sven Henrich: “Part of the reason for this washout here is how complacently bullish people were positioned into the Fed. I called it the unfalsifiable belief in the Fed. For 10 years that has worked, but we need to also recognize when that no longer applies & rate cuts/easy money no longer work.”
That’s A Pretty Big Loss
Holger Zschaepitz: “Big Tech (FANGMAN) lost $173.7bn in value in Monday’s market rout, led by a plunge in Apple. (See below).
Monday’s Market Wipeout Sees Big Tech (FANGMAN) Lose $173.7 Billion!
Dow Plunge
Holger Zschaepitz: “Dow plunged 767 points, almost 200 points off the low but still 6th largest point decline in history as US-China trade dispute unexp escalated w/Trump’s tariff threat last week and Beijing ostensibly retaliated overnight by permitting Yuan to break beyond closely-watched 7 level. (See below).
Despite Nearly 200 Point Rally, Dow Ends Down 767 – The 6th Largest Decline In History!
This Led To Declines In 2015, 2016, Last Year & Today
Robin Brooks, Chief Economist at IIF: “One of the most stable correlations over the years is between the RMB and S&P 500. RMB devaluation fears led to S&P 500 declines in 2015, 2016, last year and are doing so again now. (See below).
China Devaluation Fears Hit Stocks Hard In 2015, 2016, 2019 & Today
Expect More Rate Cuts
Robin Brooks, Chief Economist at IIF: “Markets are now pricing an easing cycle of 140 bps through end-2020, if you include the Jul. 2019 cut that’s already happened. (See below).
Markets Now Pricing In 140 Basis Points Of Rate Cuts!
Gold & Silver Buck The Trend Along With Nickel
Jeroen Blokland: “Nickel defies trade war, rises to highest level since July last year. (See below).
Price Of Nickel Hits Highest Level In Over A Year
The Real Reason Why Gold Is Surging
Peter Schiff: “CNBC is reporting that gold is not rising because of inflation, but because of uncertainty. CNBC is wrong again. Gold is rising because of the certainty that the Fed, and other central banks, will create more inflation. Rate cuts and QE are certain. That’s why gold is rising!”
The KWN audio interview with Egon von Greyerz has now been released and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
Stocks Plunge And Gold Surges
READ THIS NEXT! As Dow Plunges 600 And Gold Surges $30, This Is Truly Amazing CLICK HERE TO READ
More articles to follow…
In the meantime, other important releases…
Greyerz – Most People Don’t Understand The Scale Of The Collapse That Is In Front Of Us CLICK HERE TO READ
Time For Some Good News, Uh-Oh, And Wrong Turn CLICK HERE TO READ
Egon von Greyerz KWN Audio Now Released! CLICK HERE TO READ
Look At The Latest Bullion Bank And Commercial Short Positions In The Gold & Silver Markets CLICK HERE TO READ
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