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Quadratic's Nancy Davis asserts that the bond market's signals point towards an imminent recession.

Nancy Davis, Quadratic Capital founder, joins 'Closing Bell' to discuss her thoughts on Jeffrey Gundlach's latest on the Fed and economy. For access to live and exclusive video from CNBC subscribe to CNBC PRO: » Subscribe to CNBC TV: » Subscribe to CNBC: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: #CNBC #CNBCTV ...(read more)
BREAKING: Recession News LEARN MORE ABOUT: Bank Failures REVEALED: Best Investment During Inflation HOW TO INVEST IN GOLD: Gold IRA Investing
The bond market has been a subject of great concern lately as it sends alarming signals that a recession might be on the horizon. Nancy Davis, the founder of Quadratic Capital Management, recently weighed in on this issue, stating that the bond market is screaming warning signals regarding an upcoming economic downturn. Davis, an experienced financial expert, believes that investors need to pay attention to the bond market because it has historically been a reliable predictor of recessions. As she explains, when bond yields fall, it indicates that investors are flocking to the safety of bonds, which drives prices up and yields down. This flight to safety suggests that investors are becoming more cautious and seeking refuge from riskier assets like stocks. One of the key indicators that Davis highlights is the inverted yield curve, which has been in the spotlight recently. An inverted yield curve occurs when short-term yields become higher than long-term yields. This inversion is seen as one of the most accurate signals of an upcoming recession, as it has often preceded previous economic downturns. The bond market's current inversion has certainly caught the attention of investors and policymakers alike. Davis points out that volatility is also increasing in the bond market. She explains that bond prices are more sensitive to changes in interest rates compared to stocks. As a result, when bond yields become more volatile, it indicates that investors are uncertain about future economic conditions and are adjusting their portfolios accordingly. Increased bond market volatility can be seen as a reflection of investor anxiety and a growing belief that a recession may be approaching. Another factor Davis considers is the global economic slowdown. Several major economies are facing challenges such as trade tensions, geopolitical uncertainties, and a decrease in manufacturing activity. Davis argues that these global issues are causing investors to gravitate towards the relative safety of bonds rather than taking on the risk associated with other asset classes. While Nancy Davis offers insightful analysis and warns of an impending recession, it's important to note that the bond market is just one piece of the puzzle when it comes to forecasting economic downturns. Other indicators, such as stock market performance, consumer sentiment, and job growth, should also be taken into account. Nevertheless, the bond market's distress signals should not be ignored. Investors and policymakers must remain alert and monitor the situation closely. In uncertain times, it is vital to diversify portfolios, consider risk management strategies, and have a well-thought-out investment plan in place to weather potential economic storms. In conclusion, Nancy Davis believes that the bond market is signaling a potential recession. The inverted yield curve, increasing volatility, and global economic challenges are all contributing to this warning. While caution is necessary, it is crucial to remember that no single indicator can accurately predict the future of the economy. Therefore, it is essential to consider multiple factors and seek professional advice to make informed investment decisions. https://inflationprotection.org/quadratics-nancy-davis-asserts-that-the-bond-markets-signals-point-towards-an-imminent-recession/?feed_id=136956&_unique_id=6506ee3ece8d7 #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #ClosingBell #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews #RecessionNews #breakingnews #businessnews #cable #cablenews #ClosingBell #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews

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