The Markets Are Plunging…Are You Doing Anything About It?

The Markets Are Plunging…Are You Doing Anything About It?

The bond market has been flashing red signals about the health of the global economy for the past two weeks as the fallout from the COVID-19 outbreak continues to unfold.. Sunday's futures trading (which begins every week at 6 pm ET on Sunday nights) saw an amazing downspout in oil prices, with West Texas Intermediate crude prices quoted down 30% at the beginning of trading before recovering somewhat to trade down "only" 20% as of this writing.. Treasury bonds have resumed their massive rise in Sunday night trading, as the implied yield on the 10-year broke through 0.5%.. Bond futures traders and oil futures traders are telling you that the global economy is in deep danger of a pronounced recession.. price/cash flow, price/sales) not seen since 2002 was a stupid thing to do three weeks ago.. The sell-off has not been caused by the Fed's panic rate cut last week, which I and many other market participants panned as a pathetic effort to support stocks.. The levels at which stocks are priced are starting to be more sensible, but I believe there is more downside ahead.. I have researched stocks for 27 years, starting fresh out of college at Lehman