A typical cycle by Nucleus Wealth
1. Stock market blowoff followed by a bust.
2. Corporate debt prices fall, and yields increase.
3. USD safe haven and bond bid.
4. Flight to quality in stocks.
5. Government/central bank intervention.
6. Bounce off the lows for stocks.
7. Momentum trades kick in, driving the stock market higher.
8. Bonds start to sell, USD safe haven unwinds.
9. Rotation to value and cyclical stocks as the recovery unfolds.
10. Bond yields rise further, usually due to inflation.
1. Stock market blowoff followed by a bust.
2. Corporate debt prices fall, and yields increase.
3. USD safe haven and bond bid.
4. Flight to quality in stocks.
5. Government/central bank intervention.
6. Bounce off the lows for stocks.
7. Momentum trades kick in, driving the stock market higher.
8. Bonds start to sell, USD safe haven unwinds.
9. Rotation to value and cyclical stocks as the recovery unfolds.
10. Bond yields rise further, usually due to inflation.