Why The 2018 Stock Market Corrections Are Different

The comments below are an edited and abridged synopsis of an article by Global Macro Monitor

Why 2018 Stock Market Corrections Are Different | BullionBuzz

This year’s two S&P 10% corrections have coincided with a rise in the 10-year Treasury yield. Such a rare event, at least in recent history, has happened only once in the last 20 years, and that was a special case, caused by a massive flight to quality and complications around the Russian Debt Default and LTCM crisis. In general, when stocks fall by 10% there is a flight to quality and yields fall on Treasury securities, but the 10-year Treasury is higher than when the S&P500 peaked in September. It is signaling that there are structural changes taking place in the global capital markets.

Please share...

Leave a Reply

Your email address will not be published. Required fields are marked *