Fra Steen Jacobsen, Saxo Bank:
Two critical important charts before the weekend:
The first one courtesy of Marketwatch and the chart itself from: Arbeter Investments LLC president Mark Arbeter, CMT
The key phrase in this piece being:
“….Arbeter noted that while rates may not yet be ready to soar, equity investors may have reason to be worried. When the yield bumped up against the downtrend line before, as happened in 1987, 1990, 1994, 2000 and 2007, bad things happened on Wall Street.”
Point: Whether we break the uptrend or not, there is “negative feed-back loop” into risk assets.
The second is just as important and comes from @SongMun67 – Song Mun who pointed out in direct twitter:
Markets have logaritmic nature. Semilog charts are much better in long terms
Here the point is- we are not broken up …… yet…
Also note this – We at Saxo Bank have developed our own CREDIT IMPULSE models, this from my Head of Economics, Christopher Dembik;
https://twitter.com/Dembik_Chris/status/961918733190131712
