Dow Down Over 2000 Points In One Week

On 2/25/2020, the DOW dropped another -879 points after a decline of over -1000 points the previous day. This brings the total decline to -2267 points in only one week.

Of course, the public advice offered by financial media is to “buy the dip”. This is implying that there is a dip, rather than the market facing further decline.

I have pointed out that beyond the more public view, financial firms are advising their larger investors of completely different actions. A few months ago, Goldman-Sachs advised investors with over $200 million in deposits to divest from the dollar and invest in precious metals (especially gold) and invest in foreign currencies, especially eastern currencies such as the yuan. This advice was only offered to such large investors in a private newsletter, not intended for the general public to see or know about.

In spite of that advice, US investors have been withdrawing investments from China since the quarantine began, along with withdrawing investments from India. They have been investing in gold, though, which has risen by over $65 in the past month and over $300 in the past year.

It is no secret that the stock market has only risen because of stock repurchases by corporations while the Fed expands it’s balance sheet and bails out failing banks.

There is no guarantee that this is a “dip”. It is unquestionable that the stock market has been overvalued for years and a correction at some point is inevitable. Is this that…