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It's not news that people are predicting a 2020 recession. The bond yield inversions are literally people putting their money where their mouth is and betting o
by sleepysysadmin 7y ago
It's not news that people are predicting a 2020 recession. The bond yield inversions are literally people putting their money where their mouth is and betting on a recession. The definition of an inversion is that 3 month bonds yields better than 10 year bonds. The first inversions happened in March. It has been a mistake to go 10 year over 3 month. The 3 month bonds would have returned already and then you could have picked up the 10 year. It's completely irrational to make these decisions unless you are predicting a crash.
It's not just bonds. Price of Gold has skyrocketed since June; Gold is higher than it has been for years. Bitcoin is back above $10,000. These are your standard mechanisms to isolate your money from a crashing market.
https://www.instituteforsupplymanagement.org/ismreport/mfgrob.cfm?SSO=1 https://www.instituteforsupplymanagement.org/ismreport/mfgro...
ISM is somewhat of a decent report. Soon as they lower below 50% it means manufacturing is shrinking; which means layoffs. July 2019 new orders are 50.8%.
Nissan is laying off 12,500. GM closing multiple plants. Ford has $20 billion cash stashed and layoffs. Chrysler is laying off thousands. Toyota, Honda, everyone is laying off.
Recession is coming for sure, no question.