US Markets, L-T Yields, Trade Wars, The Yen, And Chinese Rate Hikes
Chris Temple joins me to wrap up another interesting day in the markets. The markets closed at their lows for the day with the Dow down over 700 points. Long-term yields were also hit with the 10 year touching 2.80% but not breaking lower. Volatility spiked again tuning this quarter into the most volatile in history. We also look internationally at the move up in the Yen and Chinese rate hikes. So much to consider which is why this is one of our longer market wraps.
(Audio length 00:18:13)
Disclosure: None.
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Treasuries will be interesting to watch. They can either fall as trade wars slow all economies involved or rise because those we engage in trade wars may take an unusual action of forcing up yields or outright cutting participation in the massively elevated flow of US debt coming onto the market due to Trump's tax cuts.
This is just about the worse time to start a trade war, right after running up the US deficit unless your goal is to massively devalue the US dollar, cause inflation, and kill economic growth at home and globally. If even some of these are the goals, the administration will be getting a lot more unpopular. The Fiscally conservative Republican's need to take a stand and do something before Trump initiates the Most Democratic socialist trade policy in recent history. This is all very astonishing given it's coming from a Republican Administration.