Right now, VIX is the highest since the “Pandemic Plunge” of 16 March, 2020.
T10yr bond yield is the lowest it has been for almost 2 years.
Circumstances have turned on a dime.
With the Bloomberg Commodities Index at a low since initial covid logistics snarls caused a spike, the price of oil trading low and looking to head lower and as of last Friday’s jobs report, the hourly cost of wages turning down, there is not much that could now drive inflation imo.
It’s hard to see the US economy going from being a stalwart performer to recession on speed skates, as current market reaction would suggest. So for now I’ll likely go with the flow, but I don’t see the downtrend heading into the abyss.
