JMM - Why Are Markets Acting Like Recession Is Looming?
Data shows a solid economy, yet markets are acting like recession is around the corner. Russ explains why.
An investor who ignored economic releases and instead focused on equity and bond markets might be led to believe the economy is shaky, on the cusp of sick. Even aside from the well-publicized flattening of the yield curve, investor behavior looks particularly cautious. During the past three months, U.S. Treasury and German bond yields have fallen approximately 30 basis points (bps, or 0.30%), industrial metal prices have collapsed and defensive sectors, such as healthcare and consumer