Excerpt from CNBC quoting DataTrek’s Nick Colas:
… “The bottom line here is pretty simple if not altogether positive: markets are signaling that both the US and China have blundered into a minefield,” Nicholas Colas, co-founder of DataTrek Research, said in a note Tuesday. “The risk of a US recession is rising, sharply and quickly.”
Colas points to the various indicators on inflation, rates and concerns over the Chinese dumping U.S. Treasurys as indicators from the markets that the two warring parties should heed, much the same way as the Fed took cues that it was making a policy mistake by continuing to raise interest rates.
“When markets signaled to [Fed] Chair [Jerome] Powell that he was on the brink of a policy mistake, he changed course. American and Chinese negotiators could learn from that,” Colas wrote….
Read the full article here on CNBC!