The US market had its worst week in a month and both the UK, parts of Europe and Hong Kong had their worst week in 8 months. Markets tumbled across many sectors this week as nerves are on edge with Global Debt and a risk of contagion across markets. Is this the long awaited ‘bond run’ that we have been warning you about? Maybe, maybe not. Fears are rising as US job employement figures increased even further in September.
So why did the UK fall 2.56%, France 2,44%, Hong Kong 4.38% and the US tumble 2% in two days?
We will take you through our thoughts and logic on why stock markets are worried about interest rates and the bond market:
This happened in 1987 (Black Monday), it happened in 2008 (Credit Crunch). It will happen again. Global debt is bigger than it was 10 years ago. US debt is double what it was 10 years ago. Toxic debt is back again hence the nervousness and falls in markets this week.
Add to this, Italy in trouble for Europe and in the UK speculation is increasing, with the Irish suggesting they will accept Theresa May’s solution to the Irish Border makes a Brexit deal more likely.