“A growing economy with related worries about increases in future inflation would typically produce rising yields on longer-term notes and bonds, not declining yields. A dramatic flattening in the yield curve is seen as a red flag for an economic slowdown, sagging inflation and as a potential precursor to the onset of recession. None of that would be consistent with the Federal Reserve continuing to tighten interest rates – which it is expected to do again in December.”
Pam and Russ Martens, Does Jay Powell Hear the Alarm Bells From a Flattening of the Yield Curve<
‘The ambition of Caesar and of Napoleon pales before that which could not rest until it had seized the minds of men and controlled even their unborn thoughts.’
Robert W. Chambers, The King In Yellow: Repairer of Reputations
We *almost* had a correction in the US equity markets today. Imagine that!
However, crisis was averted as determined buying of the SP 500 futures stepped in this afternoon after the European traders went home to their schatzies.
This post was published at Jesses Crossroads Cafe on 09 NOVEMBER 2017.