IEF/LQD (INVERTED) With SP500 overlain in a line chart
As you can see the inverted IEF/LQD is a great correlation to the SPX (SP500 market). Makes sense as the fed is failing to tighten financial conditions, actually LOOSENING them somehow. This not only sent equities racing up but also helped set up the conditions to invert the 10-2. The 10-3mo is close behind. Those are sending recession signals even if equities are diverging.
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