As the chart below indicates, from October 3 through October 29, the daily average of the S&P 500 went from 2925.51 to 2641.25, a drop of 9.7%:
This large drop came as no surprise to us, since we’ve been arguing for years that the Federal Reserve (under Ben Bernanke) had inflated U.S. asset markets.
Ironically, some people who see our presentation lament that the news comes too late. “Gosh, if only I had heard you guys a few years ago! Then I would’ve taken advantage of IBC and I wouldn’t be so vulnerable to the crash you’ve identified.”
If this sounds like you, then you should shake off the feeling of helplessness. Keep in mind that the last two stock market crashes were slow motion train wrecks: From peak to trough, the S&P 500 dropped 48% from March 2000 to September 2002–a move that took two-and-a-half years to complete. And after the housing bubble, from peak to trough the S&P 500 dropped 56% from October 2007 through March 2009–a fall that took over one-and-a-half years.
In short, if you are concerned about the integrity of our financial system and want to see an “out of the box” diagnosis and prescription, check out our video, “How to Weather the Coming Financial Storms.” You should also get our new book, The Case for IBC.
There is still time for action.