According to CNN, The Dow plummeted over 600 points Wednesday after being tipped off by the bond market. Because of this, for the first time since early in the Obama administration, Wall Street is nervous that some of the predicators of earlier recessions in the nation’s history are showing up now in our present economy.
Early on Wednesday, the 10-year Treasury bond yield dropped 1.6% below the yield of the 2-year Treasury bond. This is the first time since before Obama was elected that 10-year bond yields fell below 2-year yields.
In addition to that the US stocks fell.
Looking at history, every times the stocks and bonds behavior like this… a recession is on the rise. Clearly, the economy is not on the rise as President Donald Trump has stated. Many who voted on him in the last presidential election, submitted their ballots partially because they thought he was a money man. If this warning has weight, they will be gravely disappointed. We all will. Remember the last recession, it was not pretty.
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