The Stock Market Is Getting a Financial-Crisis Era Warning From Bonds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 10 2024
0mins
Should l Buy DJIA?
Source: Barron's
Market Expectations: The U.S. bond market indicates a significant shift in monetary policy is expected within the next two years, with a notable negative spread between the 2-year Treasury yield and the effective federal-funds rate, reminiscent of conditions during the 2008 financial crisis.
Implications for Stocks: While the current situation does not appear to be a balance-sheet recession, historical data suggests that such a wide spread could lead to negative outcomes for the stock market in the short term, although long-term trends show potential for recovery and positive returns, especially in election years.
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Analyst Views on DJIA
Wall Street analysts forecast DJIA stock price to rise
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Current: 22.490
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Current: 22.490
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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