Throughout the latest 20 years, the difference between US10Y and US02Y bonds is the one legitimate screener on the recessions on the real economy and indicator of bloodbath of the stock markets.
1987, 2000-01, 2008 and latest coronavirus crises are exactly corresponding the bottoms of the chart.
Now, chart sharply falls and I expect an extensive crash on the real economies or in stock market. This might be related with the recession expectations driving from a huge inflationary era that we are about to enter in.
That's why investors should really watch this closely, since the risk is high enough to take into consideration. Again speaking, I would not be surprised if we see a major sell-off in the stock market within 2022.
However, there must be a catalyst in such a scenario, like it happened in mortgage crises or covid-19. It seems like there might be some extreme conflicts between Russia-US-China axis like Putin is going extremely harsh on Ukraine, even speaking or trying to use the nukes. Yet, this is just a highly speculative possibility. The point is there must be a huge political event if we to observe such a sell-off.
Again, investors should watch this closely.
This is not a financial advice.
1987, 2000-01, 2008 and latest coronavirus crises are exactly corresponding the bottoms of the chart.
Now, chart sharply falls and I expect an extensive crash on the real economies or in stock market. This might be related with the recession expectations driving from a huge inflationary era that we are about to enter in.
That's why investors should really watch this closely, since the risk is high enough to take into consideration. Again speaking, I would not be surprised if we see a major sell-off in the stock market within 2022.
However, there must be a catalyst in such a scenario, like it happened in mortgage crises or covid-19. It seems like there might be some extreme conflicts between Russia-US-China axis like Putin is going extremely harsh on Ukraine, even speaking or trying to use the nukes. Yet, this is just a highly speculative possibility. The point is there must be a huge political event if we to observe such a sell-off.
Again, investors should watch this closely.
This is not a financial advice.