Wednesday, July 6, 2022

Numb to bad news

Mid-week market update: You can tell a lot about the tone of a stock market by the way it reacts to news. The 2s10s yield curve just inverted again, which has been a sign of an impending recession. If history is any guide, yield curve inversions have marked major market tops. The exceptions, shown as pink lines, are the instances when the yield curve just missed an inversion and economic growth continued.

Why hasn't the S&P 500 tanked? The answer seems to be it has become numb to the flood of bad news.

The full post can be found here.

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