Market Watch: Is the Stock Markets Everything Bubble Finally Popping? This Chart Might Have the Answer

Article by Shawn Langlois in Wall Street Journal Market Watch

The stock market is in shambles to start the week, with the Dow Jones Industrial Average dropping more than 700 points after China retaliated against President Trump’s latest move in the intensifying trade war.

Charles Hugh Smith, known for his Of Two Minds blog, like many other market bears, has been calling for a painful end to this bull run for a while now.

“Nothing the Fed could do will restore a fragile, speculation-dependent, debt-bubble economy to any sort of health,” he wrote. “Whatever the Fed does, it further distorts a massively distorted system, increasing the odds of a catastrophic re-set.”

Are we about to see a bounce that provides that “last exit point?”

Soon enough, Smith says, the Federal Reserve, at the behest of President Trump, will attempt to save the market but will ultimately fail.

To read this article in full and see the related chart in Market Watch, click here.