Did you watch bonds and stocks are moving in opposite directions? That is what happens when deep recessions start
Joe Weinman
Feb. 24, 2007

The bond market finally found an inverse in stock market. Simply put, it is going up as stocks are falling. The possibility of stock market crash is little because the dividend tax cut has made dividend paying stocks a proxy for tax-free municipal bonds.

But still, earnings guide the stock market. The earnings will collapse as the market tests new lows this year and economic recession finally hits the main street after bubble after bubble in the last six years.

The inverse movement of bonds and stocks are normally started of a massive economic slowdown. The GDP is headed for a negative growth due to deflation in the system.

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Did you watch bonds and stocks are moving in opposite directions? That is what happens when deep recessions start
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The bond market finally found an inverse in stock market. Simply put, it is going up as stocks are falling.
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