If this is not a sign of an economic slowdown in the 2nd largest economy in the world I am not sure what is! The chart appended below is a brief outline of the monetary policy actions by the Bank of China to stimulate their economy. No this slowdown started before the tariff talk. On
As you can see from the chart below it has been some time since the yield on the 2-Year US Treasury note eclipsed that of the S&P 500 dividend yield. This is due to the fact that the Federal Reserve has continued to raise short-term rates at a measured pace AND stocks (at least domestically)
After some time on the beach and with the arrival of Shark Week on the Discovery Channel, I thought this story of a 20-foot great white shark named ‘Deep Blue’ and the below chart seemed appropriate: Chart of the Day As you can see in the chart above, the purple line shows the Russell 1000
Yes… 9 of the last 9 recessions started with one. But …. The 2-Year to 10-Year US Treasury bonds inverted in Dec 1988, May 1998, and Jan 2006. S&P 500 peaked 19, 22, and 21 months later. It gained +33.2%, +39.6%, and +22.3% AFTER the inversion. A friendly reminder… Unconventional monetary policy produces unconventional results.
What this term really means is what is your capacity to suffer losses. FACT #1: Since 1980, the average annual intra-year drawdown is 14% for the S&P 500. INSIGHT: It has been a few years since this has happened so PLEASE do not project the current low volatility environment into the future. HOMEWORK: Take the