SPXT - When Is The Next Bear Market? 3 Things Will Tell You
- Since bonds are loans to borrowers, a bond’s interest rate is tied to the prevailing rate environment at the time of issuance.
- Historically speaking, from the time yield curves begin to invert, the span to the next recession runs roughly 9-months. However, note that yield curves are currently declining, suggesting economic growth will weaken.
- The risk of a market correction rises further when the Fed is tapering its balance sheet and increasing the overnight lending rate.
- The Fed should use the $120 billion in monthly QE to hike rates and prepare for the next recession. But, instead, they continue to kick the “policy can” further down the road.
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When Is The Next Bear Market? 3 Things Will Tell You