Hi All I know its the end of the world - again. The Corona virus is creating havoc and interest rates could soon be at zero.
Please see what happened the last time there was a crash in interest rates. After the crash a big move up. Then it took years before the crash low was broken.
Keep in mind..that there has been is a massive financial stock breakdown, in the last month.
The European Bank Index ( SX7PEX)
has broken the financial crisis lows .of 2008
Chase Bank (CMB ) has broken a multi year bull market uptrend line.
XLF, the US Bank Index put in a significant top in February 2020,
and in less than a month has lead the market down,
with breakaway gap after breakaway gap to the downside breaking multi support areas, on the way down.
Yes, it appears that the recent colossal spike down in rates,
across all maturities could have been an initial "panic spike bottom"
However, the bank stocks themselves show that it is way too soon
to think that there is a intermediate bottom in place.
Large Company Debt Defaults/Stock Dividend cuts
will soon reveal the depth of a financial crisis, only whispered about until now.
The European Bank Index ( SX7PEX)
has broken the financial crisis lows .of 2008
Chase Bank (CMB ) has broken a multi year bull market uptrend line.
XLF, the US Bank Index put in a significant top in February 2020,
and in less than a month has lead the market down,
with breakaway gap after breakaway gap to the downside breaking multi support areas, on the way down.
Yes, it appears that the recent colossal spike down in rates,
across all maturities could have been an initial "panic spike bottom"
However, the bank stocks themselves show that it is way too soon
to think that there is a intermediate bottom in place.
Large Company Debt Defaults/Stock Dividend cuts
will soon reveal the depth of a financial crisis, only whispered about until now.