David Fischer, financial expert and CEO of Landmark Capital, visits with RealSide host Joe Messina to disect the stock market correction that happened on Monday. The Fed shares most of the responsibility as they start to unwind their balance sheet.
What caused the stock market correction?
Listen to “The Real Side – After Monday’s Stock Market Correction, What’s Next?” on Spreaker.
David appears @ 18:40
– No need to panic over what happened earlier this week.
– While Monday was the largest point drop in history, it was nowhere near the worst drop in terms of percentages. Black Monday in the 80’s was 21%, this was 7%.
– This is not the end of the volatility however. This is a normal correction cycle. We’re do for a 10% and 20% correction.
– The market corrected because The Fed sold off a part of their balance sheet after years of quantative easing. They warned they would do this last year and are finally pulling the trigger.
– For more on the Fed unwinding their balance in 2018 sheet and how it will impact the markets, listen to the full interview.