For me and possibly for most of you too, it all sounded like all...

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    For me and possibly for most of you too, it all sounded like all the fear for nothing, we have seen this before. Strangely in the financial markets, they read things we don't, bond yields are going down down fast and when they do gold prices move higher and higher , all implying the market is beginning to factor in increasing prospects of a recession. The market is not waiting for confirmation of 2 quarters of GDP contraction, it is usually ahead and it is the expectation that prompts preemptive action (to sell first). Right now, that is the 64 million question and we probably have more people inclining to believe that a US recession can be averted given current relative robustness in its domestic economy but the inverted yield curve and declining bond yields are signalling otherwise and that is sending jitters. Along with that, the political crisis in Hong Kong and Argentina only adds to increasingly prevailing bearish sentiment. You can expect mainstream financial to tell you that we are not down that road yet, but when more confirmation signs are made available, you can expect more people looking for exit at the same time. Being ahead of the curve would get you out of harm's way when the real exodus begins.
 
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