Peter Schiff Warning Becomes Reality: Global Markets Tumble Again

Tuesday, October 23, 2018
By Paul Martin

Mac Slavo
October 23rd, 2018
SHTFplan.com

A potential catastrophe could occur when the current economic bubble bursts and Peter Schiff has been warning of this for a while now. The signs of economic distress are finally showing up as global markets tumbled Tuesday with European stocks touching a two-year low while United States equity futures are deep in the red.

Stocks took a nosedive on investors fears of political antics such as the trade war and rising interest rates.

Before the U.S. market opens several major companies will report results, including Caterpillar (CAT), McDonald’s (MCD), Lockheed Martin (LMT), United Technologies (UTX), 3M (MMM), Verizon (VZ), and Harley-Davidson (HOG). Results out of Caterpillar will be most closely watched with investors looking for any signs of inflation pressures, trade tensions, or a slowdown in economic growth out of the industrial giant, which is often seen as a bellwether for the global economy. –Yahoo Finance

In the past eight days, $4 trillion has bee wiped off from what had been record high values. According to NBC News, Europe’s main markets started down as much as 3 percent and shares tumbled in Asia after a wild day for U.S. markets. Two days of steep losses have erased the U.S. market’s gains from the start of this year, ending a spate of record-setting calm for stocks. The Dow Jones industrial average closed down 1,175 points on Monday, as the market bet on more interest rate hikes, the same day that a new Federal Reserve chairman was sworn in.

On Tuesday, Taiwan’s main index lost 5.0 percent, its biggest since in 2011 and Hong Kong’s Hang Seng Index dropped 4.2 percent. Japan’s Nikkei dived 4.7 percent, its worst fall since November 2016, to four-month lows. Australia’s benchmark S&P ASX 200 slid 3.4 percent, South Korea’s Kospi declined 2.4 percent and the Shanghai Composite index was off 2.2 percent. –NBC News

“It is a source of some concern that asset valuations are so high,” outgoing Federal Reserve chair Janet Yellen told CBS News, highlighting price-earnings ratios in equities. Yellen appeared to be sounding the alarm on stock prices urging caution. But most economists have foreseen this kind of a market drop.

“Everybody knew this was coming — stocks are close to record valuations and it was a matter of when it was going to happen, not if,” said Dan North, chief economist at Euler Hermes North America. “I would expect that at this point, it’s probably sentiment-driven and we’ll get a rebound.

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