and rising interest rates sent the S&P 500 more than 20 per cent below its record set early this year.
"The best thing people can do is to not panic and don't sell at the bottom," said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research, "and we're probably not at the bottom." Wall Street's sobering realisation that inflation is accelerating, not peaking, is also sending US bond yields to their highest levels in more than a decade. The two-year Treasury yield shot to 3.36 per cent from 3.06 per cent late Friday in its second straight major move. It earlier touched its highest level since 2007, according to Tradeweb.
The gap between the two-year and 10-year yields has also narrowed sharply, a signal of weakening optimism about the economy. When the two-year yield tops the 10-year, an unusual occurrence, some investors see it as a sign of a looming recession. Bears hibernate, so bears represent a market that's retreating, said Sam Stovall, chief investment strategist at CFRA. In contrast, Wall Street's nickname for a surging stock market is a bull market, because bulls charge, Stovall said.
Well done Democrats !!!
Wave 2 is on the way for America. Australia won't be far behind. Stock up on supplies.
It's the recession we had to have, not the one that we orchestrated with lockdowns and sanctions that hurt us more.