12/4/2018 – A negative day with the Dow Jones down 800 points (-3.10%) and the Nasdaq down 283 points (-3.80%) 

The stock market finds itself at an incredibly important juncture. Things are about to accelerate in an unexpected way. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here. 

I guess that’s what it looks like when Mr. Market decides to puke most of Trump’s BS out. Let’s start with something funny, or sad, depending on your point of view.

The Arrogance of Youth

Now, yesterday we wrote Yield Curve Inverts – Now What? Mish had a very interesting look at the subject matter as well. Let’s take a look.

Why the Yield Curve Inverts in One Simple Picture

Let’s return to a statement I made at the top: Thus, whether or not the 3-month to 10-year spread inverts may very well depend on how many more hikes the Fed gets in.

Nearly everyone seems convinced the bond market will give its standard recession signal in a timely fashion. That is to say, nearly everyone is convinced the two-year to 10-year if not the 3-month to 10-year spread will invert.

Don’t count on it. Japan has had numerous recessions where its yield curve did not invert at all. The US could easily do the same.

Inversion is not a recession requirement.

His conclusion is just as sound as ours. Having said that, none of the above tells you what the stock market will do next.

This does. If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here.