konhow

We have a Grey Rhino here - Markets are driven by ignorance

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TVC:US02Y   美國政府債券2年期收益
The US long-term bonds have hit new lows, the yield curve has been inverted for two years now, and inflation remains uncertain, meaning interest rates may not ease at all. Yet, stock markets are reaching new highs.

We have a "grey rhino" in this market. A grey rhino is a large and visible animal that cannot be ignored. Try not to get too close to them because when they start charging, we can never outrun them.

In this market context, we face a big, obvious problem that investors completely ignore until it becomes a crisis. It's different from a "black swan," which is a rare and unpredictable event.

When we recognize that there are problems many do not understand, we have already won half the battle.

U.S. Treasury Bonds Futures & Options
Ticker: ZB
Minimum fluctuation:
1/32 of one point (0.03125) = $31.25

2-Year Yield Futures
Ticker: 2YY
Minimum fluctuation:
0.001 Index points (1/10th basis point per annum) = $1.00

Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.

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