Black Monday, August 5th was a powerful reminder to investors that the stock markets don’t just… go up, they sometimes go down. It wasn’t the end of the world. Wall Street’s 3.0% drop on a daily basis is a big deal, but it doesn’t compare to October 1929, when the stock market fell 21% in …
Tag: yield curve
ECB: Inverted Bond yield curve warns of coming pain and 2008-style recession
The possibility of a major financial crisis, similar to the one that occurred when Lehman Brothers went bankrupt in 2008, is increasing day by day. An important indicator in this regard is the inverted yield curve of US bonds, which is historically associated with recessions. As an example, it is worth noting that from the …
Why Demand for Investment in European Bonds Is Growing
The fact that the ECB, through its programmes of the type of quantum easing (QE) and Pandemic Emergency Purchases Program (PEPP) respectively, provides the market with money, making it the main buyer of European government bonds, forces investors to create an informal queue to buy the remaining and smaller volume of European bonds offerings left …