Dangerous Summer: Risk-Off Is On Again | Seeking Alpha
James Picerno has written an outstanding article about stock market danger based on escalating bad relations with Russia along with an excellent chart of the 10-year treasury yield which shows a risk-off signal for owning stocks. As I have mentioned in other blog articles, the best way to play a risk-off situation is to own TLT, the long term treasury bond ETF. If you will look at Picerno's treasury yield chart, you will see that this indicator follows closely with what is happening in the stock market. For example, one of the low points on the treasury yield chart corresponds to July 31, 2014 when the Dow fell over 300 points. So, we have to be careful in the stock market.
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