- Today U.S. stocks extended their losing streak to 9 consecutive days
- We haven’t had a losing streak this long since 1980 – that was 36 years ago
- 8 consecutive down days last took place in the financial crisis year of 2008, so we had tied that yesterday
- Now we one-bettered it and we’re back to the longest streak since 1980
- The record for consecutive down days is 12
- The last time that happened was in 1966
- And if you don’t know what the significance was of 1966 – that was the peak of the bull market
- And the bear market that ensued went on for 16 years in nominal terms and much longer than that in real terms
- The Dow hit 1,000 in 1966 and it didn’t get above 1,000 until 1982!
- Of course, adjusted for inflation, 1,000 in 1982 wasn’t even close to 1,000 in 1966
- Certainly in terms of gold; gold was $35/oz. in 1966 and in 1982 it was probably about $500
- In terms of gold, the Dow was slaughtered during those 16 years
- Even adjusted for the CPI, I don’t think we got back to 1,000 until toward the end of the 1990’s stock market bubble
- We’ll see – we may well be down on Monday, so that would make it 10, and if we’re down on Tuesday, 11
- And if Trump wins, then we’ll probably be down on Wednesday, so we’ll see if we can set this rather dubious record
- Gold, on the other hand was going in the opposite direction
- It managed to finish the week with a small gain, but nonetheless closing above $1300
- Closing out the week at $1304, that’s the highest weekly close in some time
- Silver also eked out a small gain of 8¢, at 18.41
- The dollar continued its losing streak of late, with the dollar index closing below .97 with a .96 handle – 96.89
- As stocks are weakening, so is the dollar, and gold is strengthening
- What does this portend for the presidential election?
- Typically, when the incumbent party wins, which in this case would be Hillary, the stock market rises prior to the election
- Normally, when the stock market is falling, it’s an indication that they are going to oust the incumbent party
- Based on the stock market, one might think Trump is heading for an upset win
- Is the stock market falling because it is worried about a Trump presidency, or is it simply falling because it doesn’t matter?
Stocks Slide As Jobs Report Keeps Rate Hike Possibility Alive – Ep. 208
Peter Schiff is an economist, financial broker/dealer, author, frequent guest on national news, and host of the Peter Schiff Show Podcast.
2008 financial crisis bailout Bear Market Bernie Sanders Bitcoin Bond Market China coronavirus covid-19 DJIA dollar Dollar Index Donald Trump economic crisis economy fed Federal Reserve GDP gold gold stocks government spending Great Depression Great Recession inflation interest rates Janet Yellen Jerome Powell Market crash Minimum wage NASDAQ National Debt Oil Prices Peter Schiff President Trump QE quantitative easing recession Russell 2000 Silver Stimulus stock market tariffs Trade Deficit trade war Unemployment