Stock Market Crash 2016: This Is The Worst Start To A Year For Stocks Ever

Stock Market Collapse 2016

We have never had a year start the way that 2016 has started. In the U.S., the Dow Jones Industrial Average and the S&P 500 have both posted their worst four-day starts to a year ever. Canadian stocks are now down 21 percent since September, and it has been an absolute bloodbath in Europe over the past four days. Of course the primary catalyst for all of this is what has been going on in China. There has been an emergency suspension of trading in China two times within the past four days, and nobody is quite certain what is going to happen next. Eventually this wave of panic selling will settle down, but that won’t mean that this crisis will be over. In fact, what is coming is going to be much worse than what we have already seen.

On Thursday I was doing a show with some friends, and we were amazed that stocks just seemed to keep falling and falling and falling. The Dow closed down 392 points, and the NASDAQ got absolutely slammed. At this point, the Dow and the NASDAQ are both officially in “correction territory”, and some of the talking heads on television are warning that this could be the beginning of a “bear market”. But of course some of the other “experts” are insisting that this is just a temporary bump in the road.

But what everyone can agree on is that we have never seen a start to a year like this one. The following comes from CNN

The global market freakout of 2016 just got worse.

The latest scare came on Thursday as China’s stock market crashed 7% overnight and crude oil plummeted to the lowest level in more than 12 years.

The Dow dropped 392 points on Thursday. The S&P 500 fell 2.4%, while the Nasdaq tumbled 3%.

The wave of selling has knocked the Dow down 911 points, or more than 5% so far this year. That’s the worst four-day percentage loss to start a year on record, according to FactSet stats that go back to 1897.

When CNN starts sounding like The Economic Collapse Blog, you know that things are really bad. I particularly like their use of the phrase “global market freakout”. I might have to borrow that one.

Even some of the biggest and most trusted stocks are plummeting. For instance, Apple dropped to $96.45 on Thursday. It is now down a total of 28 percent since hitting a record high of more than 134 dollars a share back in April.

So that means that if someone put all of their retirement money into Apple stock last April (which may have seemed like a really good idea at that time), by now more than one-fourth of that money is gone.

For months, I have been warning that the exact same patterns that we witnessed just prior to the great stock market crash of 2008 were happening again. To me, the parallels between 2008 and 2015/2016 were just uncanny. And now other very prominent names are making similar comparisons. According to the Washington Post, George Soros says that the way this new crisis is unfolding “reminds me of the crisis we had in 2008″…

Influential investor George Soros said that China had a “major adjustment problem” on its hands. “I would say it amounts to a crisis,” he told an economic forum in Sri Lanka, according to Bloomberg News. “When I look at the financial markets, there is a serious challenge which reminds me of the crisis we had in 2008.”

Don’t get me wrong – I am certainly not a supporter of George Soros. My point is that we are starting to hear a lot of really ominous talk from a lot of different directions. All over the world, people are starting to understand that the next great financial crisis is already here.

As I write this tonight, I just feel quite a bit of sadness. A lot of hard working people are going to lose a lot of money this year, and that includes people that I know personally. I wish that my voice had been clearer and louder. I wish that I could have done more to get people to understand what was coming. I wish that my warnings could have made more of a difference.

I just think about how I would feel if everything that I had worked for all my life was suddenly wiped out. And that is what is going to end up happening to some of these people. When you lose everything, it can be absolutely debilitating.

You only make money in the markets if you get out in time. And unfortunately, most of the general population will be like deer in the headlights and won’t know which way to move.

There will be up days for the markets in our near future. But don’t be fooled by them. It is important to remember that some of the greatest up days in U.S. stock market history were right in the middle of the stock market crash of 2008. So don’t let a rally fool you into thinking that the crisis is over.

The financial crisis that began in the second half of 2015 is now accelerating, and everything that we have witnessed over the past few days is just a natural extension of what has already been happening.

Personally, I am just really looking forward to this weekend when I will hopefully get caught up on some rest. Plus, my Washington Redskins will be hosting a playoff game on Sunday, and if they find a way to win that game that will put me in a particularly positive mood.

It is good to enjoy these simple pleasures while we still can. Unprecedented chaos is coming this year, and we are all going to need strength and courage for what is ahead.

(Originally published on The Economic Collapse Blog)

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1 thought on “Stock Market Crash 2016: This Is The Worst Start To A Year For Stocks Ever”

  1. When Congress fails to heed the warnings look out!
    The game set up for banks virtually guarantees that they should not fail.
    The government backs every dollar they have with an equal dollar to loan money and do business.
    IF they are in trouble, blame the Real Estate Market. Blame the dismantling of the middle class by the Congress and the President over the last 8 to 10 years.
    The game rules of government have changed dramatically over the last 10 years.
    The idea of socialism in government has become too fashionable.
    Such as the Obama Care ripoff that influences the entire working class of this country in the amount of disposable income available to the average person out there.
    We have seen a dynamic increase in the cost of Health Insurance and an equal lack of real benefits due to the increases in deductables.
    We have seen outsourcing at a level unknown before in history. When 30 jobs locally were outsourced, 30 graphic artists in a local media were laid off. It did not make much sense to shoot the foot because now corrections take 8 hours to make and the advertisers are likely to run away in the other direction when no service is given.
    When property values deteriorate which is obviously happening with the accessed taxes on said real estate then there is a real problem with a sick economy that will not get better no matter who wins.
    All of the above are compounding and that is really not good.
    So what are they doing about it?
    I maintain we need a score sheet. That score sheet lists how every congress person in office has voted in the last 10-12 years. We need to know. We also need to know when they failed to vote at all for one reason or another.
    Even this is probably not enough.
    They are spending huge sums of money to fog the issues as best they can.
    Like Planned Parenthood as an example.
    So who amongst the holy than thou crowd Republicans voted to finance it this time around?
    It is all related to the bottom line selling down the river of all of the common people of this country.
    Yet, I think it is salvageable even now.
    I once played a computer version of poker. What I learned in that game is there is optimism that can be misplaced. When you make a mistake, you have to cut your losses. You do not continue down the same path blindly costing billions or even trillions of dollars by doing the same thing over and over again. Yet that appears to be how government operates.
    Making the same mistake over and over again and expecting a different result is pure unrealistic insanity. So now the “let them eat cake” crowd in our Congressional Halls are likely to experience the same results as the French Woman from history.
    Donald Trump has done one thing. He has turned the political scene on end with politically incorrect statements that horrify the government in charge right now.
    We have a woman running for President that is likely going to jail for violating federal law she herself voted to put into effect.
    We have Bernie Sanders possibly as our next President. And he is a socialist.
    Or we may have a Trump/??? ticket. Meaning no one knows who sits behind the man that is one heart beat away from being President.
    Look very closely at both parties appointed Vice.
    And look closely at the Speaker position could that person could equally become President at some point in the near future.
    And we wonder why the stock market crashes down?
    The people with billions either inherited it or they made it themselves with astute business practices. Those people are going to make a choice and in the electorial college it may not be the one the people vote for. Those people with billionaire status will likely pick the next President.
    In the meantime, the chaos created from a stock market crash likely to be bigger than 2008 is going to effect every pension in the entire country badly.
    Meaning the compounding continues and those with a little money will lose what little they have left.
    But be assured that Congress and ex-Congress people will take very good care of themselves while in office and when they retire. The rest of us are on our own.

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