As I write this, the Dow Jones Index has fallen about 800 points in light of a negative indicator from the bond markets - apparently, the yield curve between the 2-year and 10-year bonds has inverted for the first time since 2007, thus triggering a recession warning. This led to a sell-off in stocks as investors moved into bonds and gold, nullifying the Trump administration's decision to hold off on applying more tariffs on Chinese goods. I expect to see a mirrored effect take place in Singapore markets over the next few days as investors move to safer assets due to short-term fear.(Above) President Trump laying blame on the Federal Reserve for the yield curve inversion.
Recession-worries are nothing new. In fact, murmurs of recession have been present for many months, and people have been bracing for hard times. Friends and acquaintances have been cutting back on spending, and making...