Ouch.
Canadian yields completely inverted today.
89% of all spreads are negative.
Now perfectly re-testing its previous record levels.
Economic cycle looks toppy globally. pic.twitter.com/31MUtwPOyO
— Otavio (Tavi) Costa (@TaviCosta) February 7, 2020
The setup is here.$CAD is in a bearish flag.
An over-leveraged financial system now facing:
A crumbling Chinese economy.
Plunging oil prices.
Massively inverted yield curve.Significant rate-cuts are highly likely. pic.twitter.com/y8ySuKSlVk
— Otavio (Tavi) Costa (@TaviCosta) February 8, 2020
Venture Capital activity is in a free fall. Chart via @TaviCosta
That's no surprise to anyone who read my startup bubble warning last year: https://t.co/16GtJxJqF8 pic.twitter.com/m2tUMmfHga
— Jesse Colombo (@TheBubbleBubble) February 6, 2020
Best economy ever.
Durable goods new order growth just contracted again.
It has declined for 5 months straight!
Only happened 3 other times:
May 2001
Sept 2008
July 2015Key detail:
*That’s pre coronavirus epidemic* pic.twitter.com/F0fe96GP4L— Otavio (Tavi) Costa (@TaviCosta) February 5, 2020