Andy Wang chats with Nicole Petallides, host of Trading360, about the latest jobs report, rising risks to the stock market, and digital currencies.

  • The bond market is flashing a possible warning sign of a recession ahead
    • 5 year and 30 year bond yields inverted for the first time since 2006 on Monday
    • On Thursday, the more closely watched 2-year and 10-year inverted
  • The Federal Reserve is hiking rates into slowing growth
    • The stock market is currently pricing in 8 rate hikes
  • The economy is slowing
    • US Real GDP quarter-over-quarter was 7% in Q4 and is forecast to be near 0 in 1Q22
    • We are lapping $1.3T in Federal spending last year, which included the $1400 stimulus checks
    • Full-year GDP could decrease as much as 4-5%, a result of reduced government spending
  • Corporate profits could face headwinds
    • The labor market is very tight and company management teams are talking about wage increases putting pressure on margins
  • Geopolitical uncertainty remains high
    • Russia's invasion of Ukraine could negatively impact GDP growth in Europe

Do you think risks are rising or do current fears signal an interim market bottom?