Dow Decline Signals End of Western Civilization


Well, we had a good run, I suppose.

Ben & Jerry’s was pretty great. Friends and Seinfeld, at one time, were on the same network, on the same night of the week! It was called “Must-See Thursday” on NBC – Google it! Candy Crush was kind of cool. I liked going to the carwash and stadium seating at movie theaters and Blink 182. Also, Popeye’s fried chicken – waaaaay underrated.

Oh well. That’s all over now.

A lackluster response to the latest comments from the ECB’s Mario Draghi, followed by the usual scary sh*t from Jeff Gundlach and then some f***ing librarian at the Fed named Rosengren (spelling?) opened his mouth and now here we are. Looking at the first 390 Dow Jones points down of what can only be another 7000-point, generational massacre. I think that much is pretty clear.

The only question is whether or not you should bring the recycling bin back into the house and start doing some of your own composting for the upcoming Second Agrarian Age. One more Vix spike and we’ll all be subsistence farmers.

Try to enjoy the weekend (potentially your last).

OK, I’m just kidding. I don’t sell newsletter subscriptions.

My best guess as to what’s going on is that the markets are repricing in the possibility of the Fed hiking in September. All the Fedheads seem to be talking tough again, and yields are spiking. The TLT trouncing, which actually started yesterday, caught up to all the bond proxy equities (REITs, Staples, Utes, etc) and then it spilled over into the general population. And a lot of the action you saw into the close was machines doing what they were programmed to do: lay off risk when everyone else is. This exacerbates things a bit and removes a lot of the sentient, human element that old school tape-readers used to see.

No big deal. A best case scenario is that this continues for awhile. It’s been 51 sessions since we’ve seen a 1% move for the S&P 500 – from June 27th (pre-Brexit!) through yesterday. That’s over now, and with it, the complacency. You need the downs in order to get the ups. I told you this last summer, almost to the week. It’s still true.

And if we are to experience a correction (a drawdown greater than 10%), it would be the second one this year and the umpteenth in your lifetime. NBD. You’re welcome to interpret the return of normal volatility as the start of a crushing bear market / economic apocalypse, but the probabilistic data from history would not be on your side.


This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Monday Morning Links | commented on Sep 12

    […] MarketWatch OPEC Flips Forecast to Predict Rebound in Rival Supply Next Year – Bloomberg Dow Decline Signals End of Western Civilization – Reformed Broker Millionaires’ new challenge: they’re not rich enough for […]

  2. cheap wigs commented on Sep 18

    … [Trackback]

    […] Here you can find 86028 additional Information on that Topic: […]

  3. td easyweb banking commented on Oct 14

    … [Trackback]

    […] Read More Info here on that Topic: […]

  4. Chief PAC150 manuals commented on Jan 21

    … [Trackback]

    […] Information on that Topic: […]

  5. replica watches commented on Jan 23

    … [Trackback]

    […] Information on that Topic: […]

  6. wigs commented on Jan 24

    … [Trackback]

    […] Find More on on that Topic: […]