We are into the storm (as in a Covid-related recession). As is typical, the 10Y-3M yield curve went negative before the recession began and now the yield curve slope is rising during the storm (recession).
And we saw a small pop in 3-month volatility.
St. Louis Fed’s James Bull-ard stated yesterday that he doesn’t see any asset bubbles. What does he call Bitcoin rising almost 10x since March 18, 2020 and lumber futures rising 3x?
Rising prices in a recession? We are into the storm.
Update: Bitcoin hits $51,440 as Fed continue to “print hard.”