Sunday, April 10, 2022

More Signs of a Recession, Short the Market

When we take a look at the past 22 years we can see when ever the 10 Year Treasury Note hit a certain level and the yield curve reversed and inverted the crisis hit. The QQQ like other ETFs dropped significantly. The reason this did not happen in late 2018 was because of the implementation the QE, Quantitative Easing, after the financial crisis. Increasing debt, is like printing money for Covid Stimmies and “Free Government Money” or excessive social programs by buying Mortgage Backed Assets and Bonds with it. This increases the Money Stock M2 and leads to inflation. Why? Because more money is chasing fewer goods. Money stock increase should only walk along GDP increase, nationally or globally for the USD. Now that the 10 Year Note is about to hit 2.4% in my opinion the chances are great to trigger the market crash we are all waiting for.



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