/biz/ - Business & Finance

Listen up you fuckwits. The bond market ALWAYS knows. Stocks don't mean jack shit. They're literally kid's play toys. BONDS is all that matters to the big boys.

When the bond market is front running cuts and literally forcing the Fed's hand it's an EXTREMELY bearish signal. It means the bond big boys KNOW shit ain't right and that rate cuts are needed because productivity and consumption are slowing down.

If the economy could handle it the idea for the Fed is to have reasonable interest rates (3%+) forever. But the bond market is literally telling the Fed that shit is not going to fly and that we need to get back to sub 2% ASAP because the real economy can't function at 5%.

Bull steepener in bonds and Fed pivot all but guarantees 2024 will "officially" be a recession and given the length and magnitude of this bull run probably a motherfucking huge recession. Enjoy the short term euphoria while you can, but be out of equities by the time the Fed cuts. Shit will go down big time at that point.