Скачать или смотреть Market slides further on April Employment Report

Bond yields are moving rapidly higher, pushing bond prices sharply down. This removes the traditional safe havens quality, and you have this rather unique situation of losing money in both bonds and equities at similar rates. This double whammy of losing money in every asset class makes investors nervous. This creates a bias to sell and go into cash.

I think investors need to see some really good economic news, not just US but global. The sentiment is so biased towards the negative, that investors are really going to need to see some stabilization. Perhaps a lower inflation number, lower energy prices, something the get investors to believe that the Federal reserve will be able to create a soft landing.

Of note, the VIX has been in the “fear range”, over 30, for 7 out of the last 8 trading sessions. The only day it dipped below 30 was Wednesday the Federal Reserve announcement day. Recession and inflation fears just can’t be calmed by one press conference.