By now, you’re no doubt getting pretty worried about the markets.
After all, why wouldn’t you?
Russia has invaded Ukraine which has massive implications for natural resources. Oil is over $120 a barrel. The stock market is already down over 10% from its recent highs.
It’s enough to stress anyone out!
Well, unfortunately we now need to add the following: the U.S. will likely enter a recession late this year or early in the next.
According to the Fed’s research, the most accurate predictor of a recession is the 10-year/ 3 month U.S Treasury yield curve, or the difference between the yield on the 10-Year U.S. Treasury and the yield on the 3-month U.S. Treasury.
Whenever this yield curve breaks below 0%, the U.S. has entered a recession. I’ve identified this level on the chart below.
The bad news today is that this yield curve is currently rolling over in a big way.
As I write this, it’s about to take out its upward trendline (red line in the chart below). This would mean that the yield curve is no longer trending in a positive manner but is heading downwards to the dreaded ZERO that predicts a recession.
Put another way, a break of this level would almost assuredly trigger a yield curve inversion… which would mean a recession is just around the corner.
Please note, the last two recessions triggered stock market crashes. The yield curve inverted a mere six to nine months before the crash hit. This means we can expect a full blown crash some time later this year or early in the next
You’ve been warned.
- Deutsche Bank Is On The Brink Of Collapse: Get Prepared For The Next Lehman Brothers Moment
- The Truth About the Uprising in Israel
- Hillary Clinton leaked emails reason to get rid of Gadaffi
- The recession is here, the market crash is next.
- Shocking Biden hot-mic reveals how handlers program his every move WATCH. Yes, this is 100% real.
- Forget the Global Collapse. Be Mad at Trump and Putin Instead.
- The Most Common Lie Used to Justify Third World Immigration Was That It Would “Improve” Western Economies
- Woman beats herself with hammer to frame boyfriend for abusing her and it worked until her friend released this footage…
- Trans terrorist kills Christian kids. Media:
- The ‘Trans Resistance Network’ has released a statement that Audrey Hale is the real victim in the Christian school shooting