, with major indexes seeing losses of 2.5% or more in Friday morning trading.
But as investors keep buying bonds and inflation expectations dim, the prospect of negative yields is rising. While borrowers benefit in that situation, banks suffer, and negative yields have done little to boost overall growth in the countries where they prevail. "The message in the bond market may not be that much different in stocks," he said. "Bond yields are down this year, but credit spreads have not widened. That tells me the bond market is saying inflation is down but growth is OK."worried about inflation.
Normally, when stock prices are rising bond prices fall and yields rise as investors demand more of a premium for safe-haven fixed income. However, that hasn't been the case lately, with the correlation between bond prices and stocks at a four-year high, according to Lisa Shallet, chief investment officer at Morgan Stanley Wealth Management. Shallett said this is a case where "this time has been different.
LindaPJones IrishTimesLaura andersoncooper AshaRangappa_ carriecordero
This too shall pass . Calm down everyone .
It could be that stocks are overvalued?
The good news is that the wealthy who die from the virus won't need to worry about the stock market any more. 🙄 MoneyOverMortality Priorities
The trouble with Capitalism is sooner or later you run out of Working People's money. If you want to save this Republic, move to a new and radically different eco-political system immediately.