It is said when individual investors are flocking into the stock market, the crash is near. The legend is that in 1929 Joe Kennedy- a wealthy professional investor AND JFK’s father- unloaded his stock portfolio because a shoeshine boy gifted him with several stock market tips. The story might be real but it doesn’t give…
On 11 Jun 2020 The S&P 500 sank more than 5%, the Nasdaq slumped 4.5%, and the Dow Jones Industrial dropped 6.9%, or 1,861 points – the fourth biggest point-drop for the Dow on record. Why? some experts cited bearish comments made by the Fed chairman Jerome Powell the previous day, others believe the market…
The inverted yield curve was a hot topic in the past few months, i.e., the yields/interest rates on short-term US treasury bills is higher than the long-term ones, which has been the single most accurate indicator for predicting recessions. Actually it has correctly predicted all the last seven recessions in USA (Fig.1). However investors are…