Summer doldrums are here, but no loss of excitement in the markets. Every week we hear the same beat of the drums — trade negotiations, political circus, central bank policy commentary.
The treasury rates continue to weaken and bond market continues to price in rate cuts from the Fed and other central bankers. The amount of negative yielding debt is at a record and more securities continue to trade in negative territory. Whether this will result in an actual recession is anyone’s guess at this time.
The stock markets have done extremely well so far in 2019. The drop in markets in Q4 2018 and the low starting point for the YTD performance numbers help in showing spectacular returns.Continue reading