* Manufacturing tanked to deep recession levels last month .
* All commodities, and I mean all commodities, collapsed due to sharply deteriorating global economic conditions.
* Long-term Treasury bond yields tumbled (and bond prices rose), reflecting flight to safety and lower inflationary pressures due to declining commodities.
* Low-grade bond yield spreads soared reflecting rising risk.
* The VIX index jumped to 45.26, a level never seen at least since 1990 -- another sign of fear.
* The stock market sank 4%.
* The dollar remains very strong. This is good news.
Bottom line? These trends are well entrenched with stocks unlikely to rise until yield spreads decline in a visible way. Some sectors look much more attractive than others. You guessed it -- they are those doing well in a slow growth economy.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
No comments:
Post a Comment