10 Year Treasury Note Predicting Stock Market Drop?

August 30th, 2009 by andum | Posted in Make Money, Manage Money, Stock Market, Wealth Creation, Wealth Preservation

Stockchart: S&P vs 10 Year Treasury Note

Andy Dufresne at Zero Hedge just posted the above chart from StockCharts.com of the 10 Year Treasury Note and S&P index (see his post here). Please note on the chart how the 10 Year (in red) peaks before the market peaks and bottoms before the market bottoms, with a lag of 3 to 4 months. If the 10 Year is now rolling over and the same correlation holds true as the chart shows, the market should bottom in the Fall. The good news is that mortgage rates will drop, since rates are tied to the 10 Year Note.

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