US Treasury Yield Curve Highlights Recession Signals, Analyst Believes Fallout Will Be ’10 Times Worse Than The Great Depression’ Crypto Briefing
Fears of a 1970s-style recession and stagflation economy continue to grip Wall Street and investors this week, as several reports show recession signals have intensified. With oil and commodity prices soaring, Reuters reports that investors are “recalibrating their portfolios for an expected period of high inflation and weaker growth.”
As Wall Street fears stagflation, analyst thinks ‘global markets will crash’ this year
This week, there have been a slew of headlines indicating that fears of a 1970s-style stagflation economy have grown and the economic fallout is imminent. Three days ago, Reuters author David Randall noted that US investors were scared of a hawkish central bank, soaring oil prices and the ongoing conflict in Ukraine. Randall spoke with Nuveen’s chief investment officer for global fixed income, Anders Persson, and the analyst noted that stagflation isn’t here yet, but it’s getting closer to that point.
“Our base case is still not 1970s stagflation, but we’re getting closer to that zip code,” Persson said.
On Saturday, Bitcoin.com News reported on soaring energy stocks, with precious metals and global commodities breaking market records. On the same day, popular Twitter account Pentoshi tweeted about an impending “Great Depression”. At the time of writing, the Tweeter has been retweeted 69 times and has nearly a thousand likes. Pentoshi told his 523,500 Twitter followers:
The most exciting thing this year. World markets will collapse. Any market that is trading above 0 will be too high. They will call it: ‘The Greatest Depression’ which will be 10 times worse than the Great Depression.
U.S. Treasuries yield curve highlights ‘recession concerns emerging more clearly’
The following day, Reuters author Davide Barbuscia detailed that “recession concerns are appearing more prominently in the US Treasury yield curve.” Data from Barbuscia’s report highlights that “the closely watched spread between two- and 10-year bond yields was at its lowest since March 2020.”
Many financial publications point out how rising oil and commodity prices are usually associated with an impending recession. Additionally, recent documents indicate that Warren Buffett’s Berkshire Hathaway secured a $5 billion stake in Occidental Petroleum. Berkshire Hathaway also doubled the company’s exposure to Chevron.
What do you think of the reported signals that show a 1970s recession or stagflation is threatening the economy? Let us know what you think about this topic in the comments section below.
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