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August 14, 2019 02:29 PM UTC

Checked Your Stocks Today?

  • 15 Comments
  • by: Colorado Pols
Look out below.

Maybe don’t. Or have a stiff drink first:

The Dow fell 800 points Wednesday after the bond market, for the first time in over a decade, flashed a warning signal that has an eerily accurate track record for predicting recessions.

Here’s what happened: The 10-year Treasury bond yield fell below 1.6% Wednesday morning, dropping just below the yield of the 2-year Treasury bond. It marked the first time since 2007 that 10-year bond yields fell below 2-year yields.

US stocks fell as investors sold stock in companies and moved it into bonds. The Dow (INDU) fell as many as 808 points and was nearly 3.1% lower at the close. The broader S&P 500 (SPX) closed down 2.9% and the Nasdaq (COMP) sank 3% Wednesday. It was the worst day for stocks of 2019.

We’ll hold off on the political prognostication long enough for readers to grieve. But clearly there will be some.

Comments

15 thoughts on “Checked Your Stocks Today?

        1. Maybe he can stiff the social security recipients out of their checks like he did his subcontractors.  Like the farmers, he will cast it as a patriotic act to go without food and shelter.

  1. There goes my Trump Chump Change tax cut.

    Pray for a big ass recession starting about 12 months from now. 

    (Then, the new Dem president will have to bail out the economy, which will be forgotten by low information GOP voters four years later.  Same as it ever was.)

    1. Motley Fool points out  "not everyone who's offered an employer-sponsored plan actually takes advantage of it. Of those 79% of Americans who get the choice to fund a 401(k), only 41% opt to participate. As such, just 32% of the total workforce is saving in a 401(k)."  The depressing article goes on to say "The average American's 401(k) balance is $96,288, though that number varies by age group. While savers under 25 have an average of just over $4,000 saved, those aged 65 and older have an average balance of roughly $200,000."

       

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