tl;dr
Northwestern Mutual Wealth Management made a $2.7 billion bet on BlackRock’s 20 Year Treasury Bond ETF (TLT) in anticipation of a recession triggered by a cooling labor market. The firm's chief investment officer confirmed the strategic move, which has already shown early signs of success. Concerns...
Northwestern Mutual Wealth Management made a $2.7 billion bet on BlackRock’s 20 Year Treasury Bond ETF (TLT) in anticipation of a recession triggered by a cooling labor market. The firm's chief investment officer confirmed the strategic move, which has already shown early signs of success.
Concerns about a potential recession are heightened as economic indicators, including the rising US unemployment rate, point towards an impending downturn. JPMorgan has raised the likelihood of a US recession to 35%, up from 25% a month ago.
Notably, macroeconomist Henrik Zeberg predicts a severe recession, potentially the worst since 1929, and the Hindenburg Omen is flashing, indicating an increased risk of a stock market crash.
A mysterious high-stakes wager on long-term government debt placed back in June has been revealed to have been made by Northwestern Mutual Wealth Management. The $2.7 billion bet on BlackRock’s 20 Year Treasury Bond ETF (TLT) sent shockwaves through the bond market, prompting speculation about a looming economic downturn.
As CryptoGlobe reported, a concerning economic indicator in the United States is currently pointing to an incoming recession after accurately predicting the last recessions over the last 75 years accurately. That indicator, the US unemployment rate, has now risen for four consecutive months, its longest growing streak since the 2008 Financial Crisis.
Per Bloomberg’s report, JPMorgan has recently raised its chances of the US economy tipping into a recession this year to 35%, up from 25% a month ago.
Notably prominent macroeconomist, Henrik Zeberg, has recently reiterated his prediction of a looming recession that will be preceded by a final surge in key market sectors, but can potentially be the worst the market has seen since 1929, the worst bear market in Wall Street’s history.
The Hindenburg Omen, a technical indicator designed to identify potential stock market crashes, has started flashing just one month after its previous signal, raising concerns that a stock market downturn could be coming.