Uberkisht

What just happened to the stock market?

5-10% drops across the board. Is this all because of the inverted yield story?

New
ja_rule Aug 14, 2019

Fear

Amazon fjords Aug 14, 2019

Yep. Mostly!

New
Psynaptic Aug 14, 2019

No, that story has been out for a long time and isn't a sudden thing.

Salesforce gPte64 Aug 14, 2019

It’s not just a ‘story’. It has been a reliable indicator of an upcoming recession in the past. The 10/3 curve inverted in March and has remained so. The 10/2 curve is a more reliable indicator, so that inverting caused stocks to dump.

Facebook public2 Aug 14, 2019

Normal move ahead of a recession. Not a big deal.

Microsoft pJcW86 Aug 14, 2019

Decreasing investor confidence.

New
BIvv71 Aug 14, 2019

Main cause is china and hk. Yieldshit has been known for a while and is mostly priced in.

Qualcomm dynasty001 Aug 14, 2019

Forgot about Trump trade wars, Brexit, argentina rout ?? Any of these could have had an effect. Not just HK

New
BIvv71 Aug 14, 2019

The rest is fluff. Argentina isn't as big as china and what happened with hk was unpredictable.

Chase ptgi36 Aug 14, 2019

Market manipulation through deceptive headlines, basically.

Qualcomm dynasty001 Aug 14, 2019

Surprised no one actually commented why The Yield Curve has inverted sending panic signals across the market Normally the 10yr bonds yield more than the 2 yr bonds. Because investors think that over a long run , if economy is good , than their 10yr bonds will fetch them more money i.e if i am invested on a longer time , i will get more money) Yesterday the opposite happened. The 2yr bond yield became “higher” than the 10yr bond yield. Hence the “inversion” Implication wise it means that more investors think that the market currently is overheated so they are putting more money in 10yr bonds (thereby reducing their “yield”), instead of 2yr bonds ( demand and supply) Usually when this had happened, it is usually succesed by a recession in the US STOCK market. (Market and evonomy are 2 very different things) However this doesnt necessarily mean that recession will happen. It is just an indicator of current macro economic factors ).

Adobe dingdong! Aug 14, 2019

Worst advise from hello java

Salesforce unduless Aug 14, 2019

Yea but “most accurate” has like a 65% record. Slightly better than a coin flip

Jet Clavicle Aug 14, 2019

Double down