by James Rickards
The World Health Organization declared the coronavirus a pandemic today. The virus has now spread to over 100 countries and infected well over 100,000 people.
After Monday’s 2,000-point collapse of the Dow and yesterday’s 1,100-point gain, stocks broke down again today. The Dow puked another 1,465 points on further fears.
What we’re seeing now is the very definition of volatility. The market’s in a highly unstable state right now.
These violent swings show the inadequacy of the standard models that the Fed and other mainstream analysts use.
The Fed assumes so many things about markets that are simply false, like that markets are always efficient, for example. They’re not.