US market summary last 6M
A picture is always better than 1000 words: below, the chart of the yield curve (10Y yield divided by 2Y yield) versus the S&P500 == SPX (first plot)… Plain & simple: FED easing, short term interest rates drop faster than long term ones => gloomy economy => weak stock market and fly to bonds: second plot, yield curve versus 10Y bond index (UST)!
For us, as analysts & investors, we can make a powerful use of these basic observations: check the change in trend on the UST10Y/UST2Y… We will follow this macro-view on this blog!
