Stocks have basically held the line this week despite huge moves in interest rates and an ongoing rough run for global economic data. Curve inversion has many forecasting a recession, and we’ve seen a number of recent data releases that make us much more nervous about that outcome than we have been in almost a decade. On the other hand, the pivot to dovishness from global central banks, the relatively modest size and scale of yield curve inversion, some nascent signs of bottoming in global growth, and the nature of the plunge in interest rates are all reasons to not panic. Besides, despite all of the negativity US stocks have held up admirably well, and markets that trend higher on bad news are generally regarded as strong, rather than weak. In short, the outlook could be Good, Bad, or Ugly…depending how you read the tea leaves!
In addition to markets, we take a look at central bank policy, the recession outlook in the US, and weak economic data around the world this week. We cover everything you need to know as an investor in this week’s Bespoke Report newsletter. To read the Bespoke Report and access everything else Bespoke’s research platform has to offer, start a two-week free trial to one of our three membership levels. You won’t be disappointed!