The VIX has established itself above 20.
I would not be surprised if it moved to above 30 for an extended period of time. Increasing volatility by 50% from current levels.
Please note the root cause of increased volatility is much more likely to be the spread of the Tech Cancer I wrote about last week. Not tariffs and trade wars.
The current Administration recognizes the economic and national security risks created by existing trade agreements and began working to neutralize them over a year ago. The Administration is working to remedy unfair trade practices, curb intellectual property theft, and secure and strengthen domestic production of aluminum and steel which are critical to our national defense. These efforts should also be expected to trigger domestic mining of rare minerals in a much more environmentally responsible way than what is taking place in China. The long-term impact of these efforts will strengthen the U.S. Economy, National Security, and the environment.
Tech Cancer will increase volatility over the short-term as major investors are watching to see who will blink first. Much like the sell-off of Mortgage Backed Securities.
As awareness grows for Facebook’s deception, manipulation, and exploitation of its users. Stock price can be expected to drop dramatically. Sheryl Sandberg, Facebook’s COO has canceled multiple network interviews to have begun with the Sunday shows yesterday. And the buzz is Mark Zuckerberg will stand up the Senate Hearing. Answering questions that must be asked will simply be too damaging to Facebook’s value and place him legal jeopardy.
As stated in my Tech Cancer article, ‘scrapping’ data to construct user profiles for their manipulation cannot be excused away as growing pains, honest-mistakes, or my favorite Fog of War! This has all been done by design. Outsiders like Cambridge Analytica just figured out what the insiders at Facebook were doing and proved to be just as and maybe even more efficient.
As Facebook unravels so will Google. Growing awareness for how they have manipulated search; and user bias evidenced by recent YouTube censorship of conservative channels (the same is being done by Facebook – see Diamond & Silk) is a flashing warning sign forecasting significant decline.
Amazon and Apple are also at great risk.
Please note this is not a tech or stock market bubble. This is a crisis in trust. Requiring executives like Zuckerberg, Sandberg, and Schmidt to be held accountable to the fullest extent. Their highly questionable business practices warrant federal investigation. Note foreign investigations are already underway.