So the American stock market was rubbish this year and now we have an inverted yield curve (R)

Discussion in 'Finance, Investing & Economy' started by MotorcycleGang, Dec 30, 2018.

  1. MotorcycleGang

    Paris Saint Germain
    United States
    Nov 11, 2017
    Miami, Florida, U.S.
    Nat'l Team:
    United States
    Trump's trade wars will speed up the end of the business cycle and we'll have yet another recession under a Republican president (9 of the last 10 hit while Republicans were President). Sorry for everyone who lost money and will lose money in the next two years but that's what happens under Republican presidents, they cut taxes which leads to temporary booms and soon after is the bust. Thus, we have an inverted yield curve.

    https://www.forbes.com/sites/peterc...oint-dow-plunge-and-the-inverted-yield-curve/

    "If you are seeing the term "Inverted Yield Curve" for the first time, you should know what it means and why it matters for managing your money.

    It's newsworthy because on December 3, the yield curve inverted and today the Dow fell 795 points.

    We don't know what caused stocks to fall (part of the fall could have been due to investors' mistaken belief based on a Trump Tweet yesterday that his trade war with China was about to end).

    But the photo in this post does reveal how dangerous it can be to ignore an inverted yield curve. Back in March 2006, the yield curve inverted and the Bank of Japan expressed confidence that the U.S. economy would not go into a recession.

    Two years later, the global economy was brought to its knees."


    and....

    https://www.nytimes.com/2018/12/14/business/dealbook/economy-predictions-2019.html

    "Over half of the economists polled by the WSJ expect a recession to start in 2020, and slightly more than one in four expect it in 2021. Just one in ten expect a recession next year."

    So basically almost everyone who studies economics who isn't in the Trump administration thinks there is a recession on the horizon. Trump will blame Powell and the Democrats. You're going to lose more money.
     
    taylor repped this.
  2. JonesKenneth

    JonesKenneth New Member

    Liverpool FC
    England
    Jan 24, 2019
    UK
    Nat'l Team:
    England
    All in all the recession will hit the poor more than it hits to the rich, capitalism is a real sickness for sure. We saw how it blew up during economic crisis in 2008 and something similar is on the way. The rich will move their investments to the safer markets like German property market, they will overcome with the least damage, nevertheless the poor will suffer from high inflation and high prices. Brace yourselves folks.
     

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