[SierraWasp]

There went the Santa Clause Rally, right down the toilet thanks to the bond market!!!

[sergeantdave]

"Dow slumps triple digits as Treasury yield curve inverts"

Bring out your dead!

Bring out your dead!

The end is near.

[lewislynn]

Meanwhile while everyone wasn't looking at their own house of cards, waiting, hoping?, expecting, to see a "real estate bubble burst", an article in my local paper claims the median price for homes (they're still selling despite what you hear) is more than 27% higher than 1 yr ago.

If the Dow were 27% higher today than 1 yr ago it would be well over 12,000.

[LouD]

"Correlation does not mean causation" bump...

[editor-surveyor]

You're just full of good news, aren't you?

[Attention Surplus Disorder]

An inverted yield curve is an imperfect forecaster of a "general economic recession" but is considered FAR more accurate predictor of a "corporate profits recession".

I have to consider this at least somewhat perilous for the markets because 1) markets measure corp. profits, 2) corporate profits have been very high, however, that being based on 3) accomodative monetary policy and profligate gov't spending, both of which are supposedly coming to an end. All leading me to believe, and it is a belief, that what's driving the yield inversion is a short term demand for capital [demand for capital drives bond prices UP which drives their yields DOWN]....and yet....corp coffers are allegedly brimming with cash. So what's up with that?

It's lousy enough trying to formulate opinions in a world of pure and unrelenting media spin, but making financial decisions in that world is a frustrating game indeed.

IMO, markets head lower.

http://www.iseoptions.com/marketplace/statistics/sentiment_index.asp#

SCREAMINGLY bullish sentiment is not good.