The markets are a mess

The steady rise of uncertainty indices and unease among institutional investors about the markets’ future direction are both warranted

The US stock markets are frothy, with a big correction inevitable Picture: Bloomberg

As US president Donald Trump was preparing for his State of the Union address, the markets and American public opinion were in a state of flux. On Wednesday, hours before his speech, the Dow Jones industrial average fell 362 points, marking the worst two days in index performance since May 2017.The S&P 500 index fell more than 1 per cent.

Yields on government bonds spiked, and ten-year Treasury spread over three-month Treasury - ...