With global volatility picking up steam, what we just witnessed is a rarity in the past 54 years.
Here is a quick note from Jason Goepfert at SentimenTrader – Bonds dropping along with stocks
On September 6, we took a look at times when stocks and note/bond yields diverged. Over the past 1-2 months, they have been out of sync to a historical degree, and that has continued. Twice in the past three days, stocks sold off hard, and so did bonds. Usually, bonds would serve as a type of safe haven when stocks sold off by more than 1%. Since 1962, the S&P has declined by more than 1% on 1,482 days. Only 36 of those days saw the 10-year Treasury yield rise by more than 3%. It has done so twice in the past three days.
Bonds aren’t serving as a safe haven. Most often when investors flee the stock market, they move into bonds for a temporary hiding place. That’s not happening now. It has been exceptionally rare to see 10-year Treasury note yields spike by 3% or more on a day the S&P 500 has lost more than 1%, and when we have seen that during good stock markets, bonds have tended to see some big further spikes in yield.
***KWN has now released one of Gerald Celente’s most important interviews of this year and you can listen to it by CLICK HERE OR ON THE IMAGE BELOW.
***Also just released: There Are Now Hundreds Of Paper Claims For Every Available Physical Ounce Of Gold d& Silver CLICK HERE.
***KWN has also now released one of Bill Fleckenstein’s greatest interviews ever and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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