Loading ...Why The 2018 Stock Market Corrections Are Different
Just a quick note and some data to bolster our last post and concern that Treasury yields are not coming in during this stock market correction.
The table illustrates that the
This is very rare, at least in recent history, and has happened only once in the last 20 years, and that was a special case due to a massive flight to quality and complications around the Russian Debt Default and LTCM crisis.
Flight To Quality
In general, when stocks fall by 10 percent, there is a flight to quality and yields fall on Treasury securities.
Yes, the 10-year is down from its peak of 3.25 percent but higher than when the S&P500 peaked in September. One can fiddle with the data and use intraday highs and lows, but you get our point, we hope.
The Gathering Storm In The Treasury Market
https://www.zerohedge.com/news/2018-10-30/why-2018-stock-market-corrections-are-different