Financial crisis economic recession

The financial crisis before the economy is targeted by the recession.

In assessing the bond market, Morgan Stanley says he sees writing in the wall: we are due to a financial crisis.

The ongoing trade war between the United States and China, along with the decline in economic numbers, has caused many concerns among most analysts.

According to Michael Wilson, Morgan Stanley's American capital strategy, "US earnings and economic risk are higher than most investors think."

Financial crisis economic recession

Economic red flags
There are some red flags that Morgan Stanley analysts have recently mentioned as precursors to a financial crisis.

  • According to the IHS Markit financial company, production activity has fallen to a low of nine years.
  • Even worse, there was a slowdown in the US services sector. - Generally, an indicator of earnings that will come.
  • Bond markets indicated a slowdown in economic growth, with a 10-year treasury yield below the three-month treasury bill - a rare sign, an economic recession (or a deep financial crisis).

Last year, Wilson received criticism for his prospect of realizing the S & P 500. However, he became the most accurate prediction of a strategist throughout the year.

Although the market has returned and exceeded Wilson's predictions so far in 2019, he continues to claim that a "bear market" is waiting for us for the next few years. Many economists seem to agree, expecting an anemic economic growth in the second half of the year.

Morgan Stanley has recently lowered its second-quarter GDP forecast from 1.0% to 0.6%.

Bitcoin as a possible speculation in a financial crisis

A financial crisis may come, but the news is not totally bleak. From a historical point of view, the cryptographic market has been largely independent of major stock market movements. In the winter forest of crisis for 2018, the stock market reached new values. However, it seems now that the table is back. Bitcoin is rising nearly 130% this year - trumping all other asset classes.

There is a case where Bitcoin is currently one of the best fences against economic calamities. A pending financial crisis may coincide with halving the half-life Bitcoin in 2020, which will make mining rewards drop by half - making criptocurrency a lot less.

Overall, the foundations for Bitcoin appear to be strong as the mass economy fades.