What If Bonds Are Right About The Real Risk Of A Crisis Hitting Now?

With this morning’s breakout, stocks (blue line) have finally moved to within spitting distance of their upside target as predicted by the credit markets (black line).

Now comes the nasty part. China’s stock market has already shown us where things are heading. The Trade War is only going to worsen. And US markets have some “catching up” to do.

The bond market says things could be even worse than that.