KINGSTON, NY 28 March 2018—If you only follow the mainstream business news, you believe that every significant upward or downward move in equity markets was a direct cause and effect of a "breaking news" event that day.
For example, when the Dow went haywire Tuesday falling more than 350 points after being up 250 points, CNBC blamed it on poor performing tech stocks. But just a day earlier, when the Dow surged 669 points, CNBC reported: "Wall Street shook off its trade war worries from last week and markets surged."
We have repeatedly shown how the mainstream media's one-reason-a-day logic for why markets decline or rise – Gary Cohen resigning, what's going on with North Korea, or what President Trump is tweeting – is simplistically short sighted.
And contrary to their headline games, we had forecast a market correction would occur as a result of rising interest rates and over valued and over leveraged equities.
Indeed, equities have been on a down trend since early February over fears that higher wages and higher inflation would push the Fed to aggressively raise rates.