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The Yield Curve measures the difference between interest rates on 2-year Treasury notes and 10-year treasury notes. Thursday, the gap between two-year and 10-year United States Treasury notes was 0.34 percentage points. It was last at these levels before during 2007, one of the most volatile and terrifying times in financial history.
Trump's trade wars have been sparking reaction in the US equities market as headlines emerge of Harley Davidson laying off employees. FORTUNE reports: "Concerns about rising trade tensions also spread to the broader stock market. The Dow Jones Industrial Average declined 1.3% on Monday and the Nasdaq Composite index dropped 2.1% following reports that the Trump administration may bar Chinese companies from investing in U.S. companies with “industrially significant technology.” Shares of Chinese stocks traded on U.S. exchanges, such as Alibaba and JD, lost 4% or more of their value Monday." It seems that we should expect more to take place in the coming weeks. A form of economic contagion could be spreading throughout the markets.
I maintain my position toward risk in US equities.