Is the fixed income market telling us where stocks go next?
By Steen Jakobsen
This is a must read... What the 10-Year Death Cross May Mean For Stocks: PeakTheories Research
I use similar model based on monthly. Very few signals.... Very good direction indicator...
Sources: Bloomberg, Saxo Bank, StockCharts.com
A lot of you questioned me when I pointed out the sheer maths of this would in itself lead to this crossover back in early 2014.
False breaks happen, but considering a world of no new demand, falling current account deficits from big-spender USA... And a China which again is expanding supply not demand (PMI service was the lowest in history this morning. Hardly a consumption lead economy).... Growth is about to collapse in the second half...And I didn't even mention geopolitics.
I was in London yesterday.... The market is so one-sided and complacent I feel the need to scream..... Watch out!
-- Edited by Clare MacCarthy
Steen Jakobsen is chief economist and CIO at Saxo Bank