Is a stock market decline coming? All major indicators say, “Yes.” Investors are becoming cautious and taking risk out of their portfolios.
1. The bond market yield curve is flatter as investors sell 10-year Treasury notes and save their proceeds in cash.
2. Investors are selling low-quality bonds. There was so much talk about Tesla’s high-yield bond issue yesterday that people are starting to pay attention to credit ratings of firms that do not generate any cash.
3. The volatility index is the easiest to read of all indicators. The VIX exploded 27% in one day.
www.MarketWatch.comAll three indicators point to lower prices in the equity markets. This is a short-term correction which is normal for August.
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Published on August 10, 2017 08:38