- The US bond market indirectly warns of a looming recession.
- Australia stock market suffered a $63 billion loss last week.
- Bitcoin and gold rally in 2019 cements their position as alternative investments.
Jitters gripped investors following the $63 billion selloff witnessed in the Australian stock market. However, news.com.au, a major publication argues “that’s a drop in the ocean of what’s to come.” The publication goes ahead to advise investors to prepare for the worst by looking into alternative forms of investments including gold and Bitcoin.
In the wake of the plunge, Australian stocks are fighting for recovery. However, the United States bond market released an indirect warning that the largest economy in the world could be staring into a recession.
“For the first time since the Great Recession, and for only the sixth time since 1978, long-dated US Treasury bonds — which have a holding period of at least 10 years — traded at lower interest rates than their short-term equivalents. This so-called “inverted yield curve” occurred when the 10-year yield fell below the two-year yield,” the publication wrote.
While the global stocks market struggles to stay afloat, gold has is up over 20% in 2019. Moreover, the bullion is trading above its six-year high once again coming up as a viable hedge against inflation and uncertainty.
On the other hand, Bitcoin rallied to new 2019 high where it almost hit $14,000. The “digital gold” is trading at more than triple its value in December. Although there have been fluctuations with Bitcoin almost hitting $9,000, a correction above $10,100 is underway at the time of writing.
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