The Dow was down over 1,800 points in two trading days. What’s next?
Right now, demand for certain investments is set to plummet. When that happens, you’ll see the prices of all these things drop through the floor.
There is one important thing we all depend on that won’t be nearly as good as it was in the “good ol’ days” anytime soon. That’s the yield curve.
This simple strategy beat the market by more than 170% while avoiding steep losses in bear markets. It was the best economic indicator of 44 that I tested.
The Fed’s decision to stay on a path of raising rates will have implications throughout the interest-rate world, including the high-yield debt market.
With a history of defaulting on its debt, it would be natural for investors to proceed with caution with Argentina. But that’s not the case.
I don’t know when the bear market in bonds will start, but I do know that investors will suffer terrible losses when it happens.
While many are calling for concern over rising bond prices, based on the data, this isn’t something to be alarmed about.