Last chance! Market/portfolio update
Today marks an important technical and psychological event in our stock market: the 2yr and 10yr Treasuries have inverted – meaning you receive a higher interest rate for buying a 2yr US Treasury bond than a 10yr US Treasury bond. Also, the 30yr US Treasury bond has reached an ALL-TIME low interest rate of 2.05%
For most market watchers, this particular spread is the most important and they disregard any other inversion along the curve – my simple response is: THEY ARE ASLEEP AT THE WHEEL. From my thorough analysis of the 2000 and 2008 market declines, once ANY yield curve inversion occurred, it later metastasized throughout, and it did not matter when the 2yr/10yr inverted.
I want to remind you of my Dec 3, 2018 e-mail warning below when the 1st yield curve inversion occurred:
“Well, my drum-pounding about an inverted yield curve has become a reality.
For the 1st time since Jan 2006, the yield curve has made its 1st inversion: 3yr Treasury = 2.84%/5 yr Treasury = 2.83%”
We are now 9 months into the initial inversion and the global economic recession and market decline that I’ve been warning you about this year will soon be upon us. I am simply baffled by market pundits who continue to recommend buying and holding stocks now – THIS IS FOOLHARDY. If you have any portfolios still investing more than 10-20% in stocks, GET OUT AT THE NEXT MARKET UPSWING – do not get greedy and regret your decision to stay invested.
Your portfolio under my stewardship is invested in bonds (~70%); gold (~20%); preferred, dividend stocks (~10%), AND WE ARE SOLID IN GAINS, NOT LOSSES.
As always, please contact me with any questions or concerns,
Paul
