More turmoil ahead! This may just be beginning of market upheaval
By Nikos Chrysoloras, Jessica Menton & Thyagaraju Adinarayan, Bloomberg
Synopsis
With a sharp and widespread economic slowdown looming over the horizon, here’s a guide on how to prepare based on conversations and notes by fund managers and strategists
Even after one of the worst starts to an equity trading year in history, the market upheaval might just be getting started. Ominous signs are piling up that more turmoil is still coming, as key indicators point toward a potential recession. That could deepen the market rout triggered by the Federal Reserve leading a hawkish shift among central banks and war in Ukraine.
The U.S. Treasury yield curve has collapsed to near inversion -- a situation when short-term rates exceed those with longer tenors which have often preceded a downturn. In Europe, energy costs have climbed to unprecedented levels, as sanctions against Russia exacerbate a global commodity crunch.
The U.S. Treasury yield curve has collapsed to near inversion -- a situation when short-term rates exceed those with longer tenors which have often preceded a downturn. In Europe, energy costs have climbed to unprecedented levels, as sanctions against Russia exacerbate a global commodity crunch.
