Today is the day for the “big game” as one is legally required to call it so the wrath of the NFL lawyers and ambulance chasing group does not pursue one’s website.
The truth is that I’m just going to follow up from my last posting on this subject, This Is not Going to End Well, with a follow up pointing out that the “bull” market is freaking doomed, and worse about to crater further than imagined into a major bear.
I warned in that previous article that a 2’s to 10’s yield curve inversion was all but guaranteed. Now looking at the chart after Friday, all I can say is BOHICA:
The Daily Shot on Twitter had an even better chart showing the forwards warning about the projections for this curve inversion to be even deeper than first imagined since last year:
Commentary on the chart is of course my own. But this seems to indicate a deeper inversion than 2018 and worse, does not provide a future sign of bottoming out; a 100 bps inversion would be a disaster not just for the markets, but indications of a 5% plus contraction in GDP with inflation hanging at higher levels.
Stay tuned because next week is just a taste of what’s to come. The Fed appears impotent or unwilling to admit they are wrong which provides the impetus for other central banks to make a play on their monetary Monopoly money monopoly. Of course that does not end well for the United States, but who cares? It’s “big game” Sunday so get wasted, go to work hungover, buy more dog stocks as the Powell put is still there; until it isn’t.