US Stocks
The chart above is not meant to be literal, but those are the levels for the S & P 500 may find some strength. A break below 480 will yield a new low of TBD level. I would not be surprised if we S&P 500 go from high of 6100 down by 50% cut to 3000. Sound impossible? The market would be valued at October 2019 level, less than 5 years ago. That is not too far fetched for a correction.
US Bonds
Today the US Treasury market for 10 year bonds took a beating. From April 4th to now interest rates have moved from 3.8% to 4.6%! If you own US bonds, your portfolio took a beating.
Real Estate
Mortgage rates are typically based on 10 year treasury rate plus a spread (risk premium). If US 10 year bonds yields continue to rise, mortgage rates will too. That will apply pressure on real-state costs.
I can't stress enough to consider hedging assets outside the USA.
Read more at American Assets Declining Ahead
After market adjusts, I think core AI & robotics will be the next leaders, replacing older tech giant leaders. However legacy stocks will remain suppressed. Key is capital preservation and deployment.
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