Trump Became President, Stock Market Falls Off The Cliff
Posts
Copper/Zinc/Lead/Nickel Production Vs. Silver Price
Silver is mostly produced as a byproduct from copper, lead and zinc. If production of these metals goes up, then the silver price is likely to fall. The following two charts show this negative correlation.
Yield Curve Vs. VIX
The 10 year - 2 year bond spread is a leading indicator for the VIX with a 2 year delay. For more info, go here . (and the VIX is also called the fear index and is correlated to gold)
Credit Spreads Are Widening
In case you are wondering why the 10 year yield has dropped below 3%. Here is the answer. The economy is slowing down and you can see this in the people fleeing corporate bonds and going into treasuries. Credit spreads are widening and it's a bad thing.
3-2 Treasury Yield Vs. 2-1 Treasury Yield
The 3 year - 2 year treasury yield is a leading indicator for the 2 year - 1 year treasury yield and provides a good indication on how the yield curve will evolve. The delay is 4 months. For more info, go here .
Yield Curve Vs. Net Interest Margin
The yield curve shows the difference between the interest rate of high maturity bonds (10 year treasury) and low maturity bonds (e.g. 3 month bond). When this yield curve spread is high, the banks have high income streams from their loans at high yields, while their costs, paid as deposit interest to depositors, are low. That results in a higher net interest margin.