The Bond Market is Screaming.
The Bond MarketSmells Big Trouble.
Heres Where to Hide.
And at the same time, its getting more expensive to buy bonds.
But wait, what about the interest rate?
Dont forget about the interest rate.
But if youre a novice investor, it gets a bit complicated.
Lets break down how the bond market works and why Wall Street keeps having a cow.
If a company goes bankrupt and you hold its stock, youll probably get bupkis.
Bond prices do the opposite of interest rates.
In our case,interest rates have dropped, sending bond prices up.
When bond yieldsreturns on investmentdecrease, that also sends bond prices upward.
After all, the longer you invest in something, the more likely you are to get a return.
Those government bonds set the stage for the rest of the bond market.
And the bond market as a whole sets the stage for the overall economy.
So people are preparing themselves for an economic downturn by scooping up less risky investments.
The economy is not doomed (yet)
The talk of recession isnt new.
The Three-Month Treasury yield curve inverted with the 10-Year yieldin Marchfor the first time since 2007.
The market is still up, Brown said.
As of right now, both stocks and bonds are still up.
For the average investor, you probably dont need to do anything.
