Chart of the Week

By Colin Twiggs
March 7, 2020 7:00 p.m. EDT (11:00 a.m. AEDT)

First, please read the Disclaimer.

Financial markets are bracing for impact, in anticipation of a major event. Liquidity is at a premium and Treasury-bill yields (gray) have plunged to 0.6%.

Long-term treasury yields have plummeted, with 10-year Treasuries now yielding a record low 0.70%.

CPI is running at 2.50% (Jan 2020) which means that real interest rates are a whopping negative (-1.80%).

Stay on the defensive.

"The most frightening disease I have ever encountered ...and that includes Ebola, MERS and SARS"

The Trump administration is setting the USA up for a major virus outbreak. Minimal testing, in order to keep the numbers down, threatens a rapid explosion which could overwhelm the health care system. This is a situation where people need to stand together to face the threat. Not deny, deflect and misinform.

Dr Richard Hatchett is a "Public health executive with extensive governmental expertise and leadership experience in medical countermeasure development and public health emergency preparedness more generally. Served in the White Houses of Presidents George W. Bush and Barack Obama and designed and led medical countermeasure development programs at BARDA and NIH, including planning for and responding to H5N1 avian influenza ("bird flu"), the 2009 H1N1 influenza pandemic, and the Ebola, MERS, and Zika epidemics."

His stint in government included:

Deputy Director and Chief Medical Officer, Biomedical Advanced Research & Development Authority, US Dept. of Health & Human Services 2011 - 2017
Director, Medical Preparedness Policy, National Security Staff, The White House 2009 - 2011
NIH: Associate Director for Radiation Countermeasures Research & Emergency Preparedness 2005 - 2011

Feedback needed

A reader wrote the week before last to say that they really enjoyed my posts but did I always have to be so negative? Could I not present a more balanced view?

I do not believe that would be in your interests. If something in financial markets really concerns me, I need to warn you about it. Likewise, if I see an opportunity, I will draw your attention to it. Adopting an even-handed approach, giving both bull and bear views, is seldom in readers' interest. Your feedback would be appreciated: let me know whether you agree or disagree.

"They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side."

~ Jesse Livermore

Updates for Market Analysis Subscribers

Please take advantage of our $1 special offer for the first month. Cancel at any time.

Disclaimer

Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289.

Everything contained in this web site, related newsletters, training videos and training courses (collectively referred to as the "Material") has been written for the purpose of teaching analysis, trading and investment techniques. The Material neither purports to be, nor is it intended to be, advice to trade or to invest in any financial instrument, or class of financial instruments, or to use any particular methods of trading or investing.

Advice in the Material is provided for the general information of readers and viewers (collectively referred to as "Readers") and does not have regard to any particular person's investment objectives, financial situation or needs. Accordingly, no Reader should act on the basis of any information in the Material without properly considering its applicability to their financial circumstances. If not properly qualified to do this for themselves, Readers should seek professional advice.

Investing and trading involves risk of loss. Past results are not necessarily indicative of future results.

The decision to invest or trade is for the Reader alone. We expressly disclaim all and any liability to any person, with respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance upon the whole or any part of the Material.

Please read the Financial Services Guide.

	Chart of the Week By Colin Twiggs March 7, 2020 7:00 p.m. EDT (11:00 a.m. AEDT) First, please read the Disclaimer. Financial markets are bracing for impact, in anticipation of a major event. Liquidity is at a premium and Treasury-bill yields (gray) have plunged to 0.6%. Long-term treasury yields have plummeted, with 10-year Treasuries now yielding a record low 0.70%. CPI is running at 2.50% (Jan 2020) which means that real interest rates are a whopping negative (-1.80%). Stay on the defensive. "The most frightening disease I have ever encountered ...and that includes Ebola, MERS and SARS" The Trump administration is setting the USA up for a major virus outbreak. Minimal testing, in order to keep the numbers down, threatens a rapid explosion which could overwhelm the health care system. This is a situation where people need to stand together to face the threat. Not deny, deflect and misinform. Dr Richard Hatchett is a "Public health executive with extensive governmental expertise and leadership experience in medical countermeasure development and public health emergency preparedness more generally. Served in the White Houses of Presidents George W. Bush and Barack Obama and designed and led medical countermeasure development programs at BARDA and NIH, including planning for and responding to H5N1 avian influenza ("bird flu"), the 2009 H1N1 influenza pandemic, and the Ebola, MERS, and Zika epidemics." His stint in government included: Deputy Director and Chief Medical Officer, Biomedical Advanced Research & Development Authority, US Dept. of Health & Human Services 2011 - 2017 Director, Medical Preparedness Policy, National Security Staff, The White House 2009 - 2011 NIH: Associate Director for Radiation Countermeasures Research & Emergency Preparedness 2005 - 2011 Feedback needed A reader wrote the week before last to say that they really enjoyed my posts but did I always have to be so negative? Could I not present a more balanced view? I do not believe that would be in your interests. If something in financial markets really concerns me, I need to warn you about it. Likewise, if I see an opportunity, I will draw your attention to it. Adopting an even-handed approach, giving both bull and bear views, is seldom in readers' interest. Your feedback would be appreciated: let me know whether you agree or disagree. "They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side." ~ Jesse Livermore Updates for Market Analysis Subscribers Please take advantage of our $1 special offer for the first month. Cancel at any time. Global financial markets are sinking Global stocks at a watershed What the Big Five can tell us Australia: The bear case Gold soars as rates plummet ASX breaks support at 6400 China returns to work (cough) Why a Fed rate cut will not save us Markets seldom travel in a straight line Disclaimer Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289. Everything contained in this web site, related newsletters, training videos and training courses (collectively referred to as the "Material") has been written for the purpose of teaching analysis, trading and investment techniques. The Material neither purports to be, nor is it intended to be, advice to trade or to invest in any financial instrument, or class of financial instruments, or to use any particular methods of trading or investing. Advice in the Material is provided for the general information of readers and viewers (collectively referred to as "Readers") and does not have regard to any particular person's investment objectives, financial situation or needs. Accordingly, no Reader should act on the basis of any information in the Material without properly considering its applicability to their financial circumstances. If not properly qualified to do this for themselves, Readers should seek professional advice. Investing and trading involves risk of loss. Past results are not necessarily indicative of future results. The decision to invest or trade is for the Reader alone. We expressly disclaim all and any liability to any person, with respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance upon the whole or any part of the Material. Please read the Financial Services Guide.	Share: A+ A− FREE 12-month subscription to The Patient Investor Get the insights you need to stay ahead in financial markets when you sign up to Incredible Charts premium service by 31 December. Start Now Incredible Charts Try our popular premium stock charting software, with proprietary trading tools and powerful stock screens. More than 420K downloads Suitable for Windows 10 & 11 Start with a 5-day Free Trial Download Premium Web Charts Premium cross-platform web charts with proprietary trading tools and powerful stock screens. No downloads or installation required. Suitable for Windows, macOS, and Linux operating systems. 5-day Free Trial Trading Diary Free education, with technical updates and macro outlook. Join Now
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