A few more days like this and Wall Street will start to panic
Do you want to know just how serious things have gotten? Do a Google search for 'stock market crash'. There are almost no results returned in the last couple days.
The top result is from Motley Fool. Stock Market Crash: 3 Absolute Bargains Just Begging to Be Bought
Wall Street's 'fear gauge' shows that everyone is still expecting a bottom, despite trillions of dollars of paper wealth being exterminated.
But that's nothing compared to the bond market bloodbath.
Almost never has the U.S. bond market lost as much money as in the first four months of 2022, according to Edward McQuarrie, an emeritus professor of business at Santa Clara University who studies asset returns over the centuries.
Long-term Treasury bonds lost more than 18% this year through April 30. That surpasses the previous record, a loss of 17% in the 12 months ending in March 1980, says Mr. McQuarrie. The broad bond market has performed worse so far in 2022, he says, than in any complete year since 1792 except one. That was all the way back in 1842, when a deep depression approached rock-bottom.
Stocks and bonds haven't gone down in tandem since the 1970's. There's no one working on Wall Street that has ever traded in a market like this. They don't have a clue how to protect themselves, nor any of their clients.
Which means sometime in the near future someone big is going to implode, and that'll take everyone by surprise.