According to Euro Pacific Capital CEO Peter Schiff, rising interest rates is the main driver behind the selloff.
“People want to blame it on China, but it’s not about China. The U.S. market was falling before the Chinese slight devaluation,” Schiff said.
“There has been a lot of technical damage done, and if the Fed isn’t going to come out and come clean about the fact that it’s not raising rates, I think this correction will turn into a bear market,” he added.
There is no strong catalyst for the bear to appear. In my opinions, these could be the trigger points :
1) Oil countries start to run into bankruptcy due to persistent low oil prices
2) Fed going ahead with interest rate rise and the percentage of rising given a shock to the world
3) China’s stock investors panic selling causing the stock market to crush