Bit of Shades of 2018 Rout Coming: Medley Global's Emons

The video discusses the impact of bad news on market sentiment, particularly in the context of the ongoing trade war. It examines how markets have priced in these events, the signals from the bond market, and the potential for a recession. The role of central banks, including the Federal Reserve, in mitigating economic slowdown through rate cuts and quantitative easing is explored. The importance of a trade war resolution for market confidence is highlighted, along with the challenges of liquidity conditions and financial strain as the year-end approaches.

What are the implications of the inversion of the yield curve mentioned in the text?

What challenges do central banks face in averting a recession according to the discussion?

How might a resolution to the trade war affect market sentiment?