After the first two weeks of trading in 2016, the U.S. Stock Market was down significantly. At the end of week 2, the DJIA was down 8.2%; the S&P 500 was down 8%; and the NASDAQ was down a stunning 17.3%.
At the end of week 3, the market was still down for the year. However, the market was slightly better. At the close of week 3, the DJIA was down 7.6% for the year; the S&P 500 was down 6.7% for the year; and the NASDAQ was down 15% for the year.
The market price for oil fell into the $ 27/barrel range during the week, but closed the week above $30/barrel.
From January 20/2016 through January/23/2016, more than 40 heads of state and government, as well as 2,500 leaders from business attended the 46th. World Economic Forum in Davos, Switzerland. The theme was ” Mastering The Fourth Industrial Revolution.”
Some of the guests at the Forum were interviewed by the media. Only two made a profound impression on me: 1) When a representative from China spoke, many members of Western countries thought that his statements were ” out of touch ” with the present world economy. I believe that the confusion happened because the Occidental mind and the Oriental mind view time in a different perspective. 2) Multi-Billionaire, George Soros, stated that the world is in a worldwide economic deflationary environment. Soros stated that governments simply do not understand how to deal with a worldwide deflationary environment because there has not been a worldwide deflationary environment since the 1930’s.
David Stockman, a well read economist and author of ” Stockman’s Contra Corner ” continues to caution readers that the U.S. stock market is in a bubble and the bubble is about to burst. Stockman believes that the highly overvalued FANG stocks are responsible for the upcoming bust which will take place this month. The FANG stocks are: 1) Facebook, 2) Amazon, 3) Netflix, and 4) Google.
Since the year started, the S&P 500 has lost $ 2 Trillion in value as of January 21, 2016.
R. Van Conoley ( Editor’s Note: Although the date listed at the top of this posting is Jan/18/2016, the actual article was written and posted on January 23/2016. The listing date of Jan/18/2016, was placed there on that date to hold the place for this article on this website. Sanityandsense.com recommends that interested individuals read all three articles about the U.S. Stock Market titled: Week 1, Week 2, and Week 3. They were grouped together for the reader’s convenience. )