Right now, the yield curve is dangerously close to flattening – then soon after will invert.
Looking at the 2 n’ 10 Rule – the spread between the 2-year Treasury and the 10-year Bond – we see the spread is at the lowest it’s been since The Great Recession of 2008.
Today, Americans are saving at the highest levels since the 1991 recession. They are skittish about the future.
The South-Korean Export Growth (SKEG) Indicator. . .
Many wouldn’t have guessed that South Korean exports are a great leading indicator of global corporate earnings (EPS).
But historically – it is.
And right now, the SKEG indicator just turned negative.
That means so will global corporate earnings.
Just look at the 25-year correlation between the two. . .