Some investors may be freaked out over the recession signal being sent by bond market rates, but if history is a guide, there is still time to capture more gains in the stock market.
On Friday, the combination of the Fed's dovish forecast after its meeting Wednesday and weak German manufacturing data combined to drive the 10-year yield sharply lower to 2.41 percent. The 3-month yield was at about 2.45 percent, but not falling as much. Rates move opposite price, so bad news on the economy results in lower yields. The curve remained inverted Monday, with the 3-month at 2.45 percent, above the 10-year yield of 2.42 percent.
"I believe there continues to be overwhelming demand for US Government debt," he wrote in a note."By far the US has the best or highest rates. This is versus many countries having zero or even negative rates, there is currently over $11 Trillion dollars of outstanding sovereign debt with negative yields! Regardless of economic perceptions be they good or in the case of Friday bad, the value inherent in US Government debt is creating exceptional demand.
"Just looking at it, I don't think that by itself it's a major short-term concern. You have to see how things play out. There were some exceptions where you didn't see a recession, but typically you saw one in the next year or two," he said. Analysts also said they would watch to see if the move is sustained or just temporary."If we start to see it steepen again right away, it could get ignored," said Hickey."If we see it get further and further inverted, that would be something that would obviously be a cause for concern. We have a week left in the quarter and if we see earnings warnings from companies start to pick up that would be something to worry about.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Delaying the inevitable.
Trying a hard sell here ? Ain’t we ?
FoxBusiness MadMoneyOnCNBC even banks do well in a flat yield curve and Janet Yellen says we have a flat yield curve
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Junior Gold Miners, Egyptian Stocks And E-Sports: Exotic Investing For EveryoneJan van Eck's strategy is to find a twilight zone midway between active and passive management. The result: hot funds that dare to be different.
Source: Forbes - 🏆 394. / 53 Read more »
Junior Gold Miners, Egyptian Stocks And E-Sports: Exotic Investing For Everyone“We’re an American firm, but we’ve always had an international perspective,” says Jan van Eck, the cautious 55-year-old Stanford law graduate who presides over an empire of risk Am I the only one hoping 'empire of risk' is a classic boardgame reference? risk worlddomination Should invest in Brazil, the better place to make money being consciously cautious where to risk
Source: Forbes - 🏆 394. / 53 Read more »
Stocks set for slight gains | Mueller finds no collusion | Apple's new servicesFollowing their second worst day of 2019 on Friday, stocks are struggling in an attempt to rebound as the new week begins. Bullshit. ..pppppp
Source: CNBC - 🏆 12. / 72 Read more »
Mueller aside, why stocks could be about to deliver explosive gainsWhile it might not amount to “total exoneration,” as Donald Trump put it, it’s hard to argue that the Mueller report didn’t deliver a tidy little victory the...
Source: MarketWatch - 🏆 3. / 97 Read more »
Stocks making the biggest moves premarket: Biogen, Viacom, Boeing, Deutsche Bank & moreSome of the names on the move ahead of the open. I'm guessing there's a problem with due diligence. ToxicAsset DeutscheBank Deutsche Bank and German rival commerzbank have hit a snag in their merger talks, according to wsjournal, with the fate of Deutsche Bank's U.S. operations among the contentious issues.
Source: CNBC - 🏆 12. / 72 Read more »
Stocks open lower as global growth concerns outweigh positive Mueller outcome for TrumpStocks fell at the open as concerns over the outlook for the global economy continued to weigh on investor sentiment even after the special counsel found no collusion with Russia on the part of President Trump. How will suburban women feel about being hoodwinked by the Democrats. 2020 is a year to vote for those who work for you instead of trying to set the Guinness record for being triggered.
Source: CNBC - 🏆 12. / 72 Read more »
Junior Gold Miners, Egyptian Stocks And E-Sports: Exotic Investing For EveryoneJan van Eck's strategy is to find a twilight zone midway between active and passive management. The result: hot funds that dare to be different. Truly an Inspiration!
Source: Forbes - 🏆 394. / 53 Read more »
Stocks edge lower on growth worriesU.S. stocks started the week lower, adding on to their losses from Friday when all three major benchmarks recorded their worst one-day drop since Jan. 3. The...
Source: MarketWatch - 🏆 3. / 97 Read more »