All asset classes march, or more precisely, are self organized into fractal progressions which characterize the global macroeconomic system and predict future macroeconomic growth and decay.
That is a profound observation that few of the great economic Nobel laureates appreciate, although most have an appropriate understanding of the patterned recognition of falling and inverting US interests rates with the ten year US note now yielding less than the 1 month US treasury bill – well associated and antecedent to falling equity valuations and economic recession for the end user citizens of the global macroeconomic system.
What is happening?
The global macroeconomic system is nearing the equity apogee end of the US hegemony starting as a insignificant colony-nation in 1789-90, and initiated with a first class human rights constitution maximally (to my belief) and disproportionally promoting hegemonic nation economic growth.
The assertion of this poor blog is that macroeconomic growth progresses and decays in a fractal manner. Very likely the observable universe and everything in it expands and contracts in a similar fractal manner, whose math like the Chinese aging methodology is importantly different.
For the US progenitor equity system the fractal progression is 1/2x//x//2.5x//2.5x. this correlates to 18/36/90/90 years … approximately …
Incipient unpayable global debt, 14 trillion dollars of debt with negative interest rates, and destabilizing derivative bets on that unstable global debt system are the exact causes for the ongoing fractal decline in US debt interest rate or for the more knowledgeable, the paradoxical gains in the growth of US debt future value.
Importantly All asset class valuations support all other asset valuations….
Individual asset valuation devaluation will be directly dependent on the totality of ALL composite asset and debt (also importantly an asset) devaluation (and first time (dt) order valuations/devaluations).
Why are US debt interest rates falling before Federal reserve interest are cuts? Because US debt is ultimately backed by the composite productivity and nuclear resources and delivery systems of the United States. Of all global asset class entities, this is the least worst.
How will further necessary sovereign debt expansion affect the September 2019 decline of global equities?
Likely, for the common global earth citizen, not enough.