GET READY FOR THE RETURN OF SECULAR STAGNATION

The Interview · Featuring Daniel Lacalle and Ed Harrison. Watch here:

How can a a small rise in bond yields scare policymakers so much?

Ned Davis Research estimates that a 2% yield in the US 10-year bond could lead the Nasdaq to fall 20%, and with it the entire stock market globally. A 2% yield can cause such disruption? How did we get to such a situation?

The pace of global recoveries since 1975 has been slower and weaker, consistently evey time, according to the OECD. Recoveries take longer and happen slower. At the same time, periods of crisis are less aggressive albeit more frequent than prior to 1975.  Another interesting evidence of the crises and recoveries since 1975 is that almost all economies end the recession period with more debt than before.