Corporate bonds are approaching COVID crash lows, and quickly. pic.twitter.com/iMPKPgQjlW
— Markets & Mayhem (@Mayhem4Markets) June 14, 2022
The 5yr and 30 yr yield curve inverts to the deepest level since 2000. The curve is flip flopping again.
Whether it flips or not, the Fed is likely tightening into a recession. This is just one of those measures that may or may not allude to it. pic.twitter.com/NaRoeOrrlI
— Ayesha Tariq, CFA (@ayeshatariq) June 14, 2022
Credit spreads are back around the late 2018 wides, driven by the same headwinds as then – a tightening Federal reserve. This time however, there is a more coordinated global CB effect that could be the driver behind a sustained widening, absent the BOJ (for now). pic.twitter.com/SyG13xQSlX
— 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭 𝐌𝐚𝐫𝐤𝐞𝐭 𝐇𝐲𝐩𝐞 (@EffMktHype) June 14, 2022
🇺🇸 US Rates Have Biggest Two Days Since 1987, Jolting Global Assets – Bloomberg
*Link: t.co/KBMF5yrNOt pic.twitter.com/3CPO4meXeU— Christophe Barraud🛢🐳 (@C_Barraud) June 14, 2022
"The Federal Reserve's job gets more challenging by the day with inflation at a new 40-year high, coupled with a broader weakening of the economy…The Fed is tightening policy into a recession."@Quillintel
t.co/2umU7cAiMQ by @FoxBusiness
— Danielle DiMartino Booth (@DiMartinoBooth) June 14, 2022
Central Banks & ISM pic.twitter.com/F2hOs4Uhws
— Win Smart, CFA (@WinfieldSmart) June 14, 2022
91% of $NDX components are below their 200 daily moving averages as the index is in proximity of its weekly 200 day moving average, a key market control pivot. This is lowest print since the GFC. pic.twitter.com/IRQMtK6xFM
— Sven Henrich (@NorthmanTrader) June 14, 2022
Despite last nights rout in global markets, oil prices are roughly where they were when the sell off started.
This lack of downward pressure even as the market is tanking should be of major concern to anyone hoping for central banks to shift to a dovish stance. pic.twitter.com/9k5XLqto3S
— Avid Commentator 🇦🇺 (@AvidCommentator) June 14, 2022
The Laws Of Mean Reversion Have Begun Their Summer Offensive
(Bill Blain via ZeroHedge) “When valuations are extreme, “Mean Reversion” towards historical norms is likely. Once value stocks turn, the recovery can be fast and intense.”
We’re officially in a bear market, but markets are still massively overvalued. The laws of Mean Reversion are immutable – some stocks are going lower. Inflation, Bond Markets and Confidence are all flashing danger signals.
It was messy out there y’day! Stocks prices down and bond yields up! It’s officially a US Stock Bear Market! 20% down this year. Ouch!
There is little to suggest it won’t be much the same today. Recessionary indicators are nailed on. When all around are losing their heads….. and all that. The whole market feels like it’s going to hell in the proverbial handbasket – which is exactly as predicted.