Weak Data Sends Recession Fear Surging
The markets nosedived again today as recession fears are spiking amongst investors globally. While US investors got a bit of a reprieve from the trade war due to the announcement that new tariffs had been delayed, bad economic data out of Germany and China made a global recession look more likely. The big selloff not only dragged US bonds into a 2/10-year inversion, but also inverted the UK yield curve for the first time since 2008. German bonds saw yields fall to a record low (in negative yield territory).
FINSUM: The doom and gloom is warranted given the current backdrop, but it is also not unreasonable to think the current “wall of worry” is the perfect mountain for this bull market to climb.
- bear market