General Discussion

lunasun

(21,646 posts) Fri Feb 2, 2018, 03:44 PM Feb 2018

US bond market rout fears trigger Wall Street sell-off

https://www.theguardian.com/business/2018/feb/02/us-bond-market-rout-fears-trigger-wall-street-sell-off
Some here are wondering why the stock sell off
Part of it is bonds market indicators

Investors headed for the exits amid growing fears over a bond market rout, triggered by early signs of inflation in the US as economic growth accelerates. US government bond yields, which rise as prices fall, hit the highest level since January 2014.

Weez done melted up

Some investors called the tail-end of the bull market a “melt-up” – with US shares continuing to rise despite looking overpriced by traditional yardsticks, warning it was a last hurrah before a downward correction or crash.
Despite the warning signals flashing for global stock markets, economists said the drop in equity prices may be a short-term trend if the world economy can continue to expand without generating too much inflation and if central banks do not hike interest rates more than anticipated.
But a number of risks lurk in the background, including rising tensions over trade between the Trump White House and the rest of the world, or the re-emergence of geopolitical tensions or from rising indebtedness in China.

Analysts at the investment bank UBS said: “The probability of a larger market drawdown remains low for the time being. In other words, the bear [market] is likely to stay asleep over the next six months.”

12 replies

= new reply since forum marked as read

Highlight:

US bond market rout fears trigger Wall Street sell-off (Original Post) lunasun Feb 2018 OP

i wonder if the feds should increase interest rate AlexSFCA Feb 2018 #1

Lets blame Nunes. 33taw Feb 2018 #2

Janet Yellen warned of this Wellstone ruled Feb 2018 #3

Yellen followed the Bernanke doctrine which was the result of Greenspan's nonsense. joshcryer Feb 2018 #8

So true. Wellstone ruled Feb 2018 #10

Her fustration on infrastructure / reinvestment in the country. joshcryer Feb 2018 #11

So, what's the end game? A correction or is this like any bubble and once it pops... Drunken Irishman Feb 2018 #4

Take a look at what the stock market did during watergate investigation....up to and including asiliveandbreathe Feb 2018 #5

I've been watching CNBC and everyone they've talked to has a different explanation politicaljunkie41910 Feb 2018 #6

Ok I changed the OP to add this is part of whats bringing stocks down . The bear market lunasun Feb 2018 #7

Bonds Johnny2X2X Feb 2018 #9

Its driving YIELDS higher A HERETIC I AM Feb 2018 #12

AlexSFCA

(6,137 posts)

1. i wonder if the feds should increase interest rate

Reply to lunasun (Original post)

Fri Feb 2, 2018, 03:46 PM

Feb 2018

33taw

(2,443 posts)

2. Lets blame Nunes.

Reply to lunasun (Original post)

Fri Feb 2, 2018, 03:47 PM

Feb 2018

Wellstone ruled

(34,661 posts)

3. Janet Yellen warned of this

Reply to lunasun (Original post)

Fri Feb 2, 2018, 03:50 PM

Feb 2018

possibility. Wall Street is reacting to her being not reappointed. She was and is the Brightest Person to hold that position.

joshcryer

(62,276 posts)

8. Yellen followed the Bernanke doctrine which was the result of Greenspan's nonsense.

Reply to Wellstone ruled (Reply #3)

Fri Feb 2, 2018, 04:04 PM

Feb 2018

We are all Keynesians.

I would not want that job.

She should be glad she got out while she could.

Wellstone ruled

(34,661 posts)

10. So true.

Reply to joshcryer (Reply #8)

Fri Feb 2, 2018, 04:10 PM

Feb 2018

joshcryer

(62,276 posts)

11. Her fustration on infrastructure / reinvestment in the country.

Reply to Wellstone ruled (Reply #10)

Fri Feb 2, 2018, 04:15 PM

Feb 2018

With no followup really struck me. Bernake stayed away from such loud political statements. She wanted something done. The Feds hands are really tied. They can only print money and limit interest rates, neither of which is itself a great tool for managing the worlds largest single economy.

Drunken Irishman

(34,857 posts)

4. So, what's the end game? A correction or is this like any bubble and once it pops...

Reply to lunasun (Original post)

Fri Feb 2, 2018, 03:53 PM

Feb 2018

...it bleeds into every facet of the economy?

asiliveandbreathe

(8,203 posts)

5. Take a look at what the stock market did during watergate investigation....up to and including

Reply to lunasun (Original post)

Fri Feb 2, 2018, 03:56 PM

Feb 2018

Nixons resignation..stock market fell 39%..just research "what did the stock market do during Watergate investigation"..all sorts of articles....you decide what link to read..lots to choose from....

politicaljunkie41910

(3,335 posts)

6. I've been watching CNBC and everyone they've talked to has a different explanation

Reply to lunasun (Original post)

Fri Feb 2, 2018, 03:58 PM

Feb 2018

i.e. "the market goes up the market goes down". Sssshhhhhsssss!!!! The last two gentlemen were not willing to blame it on the bond market. I guess no one so far wants to blame this shit on the Orange Man in Washington DC. That's where I'm placing my blame. The asshole has started something that he's not going to be able to control. The Market doesn't like uncertainty, and the shit is going to hit the fan as the market continues to plunge.