Prominent financial analyst Gordon Johnson has ignited discussion on social media, suggesting that a potential “Liberation Day 2.0” – an event triggering a significant equity market downturn – could be imminent.
What Happened: The CEO and Founder at GLJ Research, LLC, Johnson’s comments come as the yield on the 30-year U.S. Treasury note edges closer to the critical 5% mark, coinciding with a weakening U.S. dollar.
In a series of posts on X, Johnson engaged with another financial commentator, Capital Flows, regarding the interpretation of rising interest rates. While acknowledging the argument that higher 30-year yields could signal increased U.S. growth and inflation, Johnson questioned the concurrent decline of the Dollar Index.
“If rates are rising, while the DXY is falling, is that not indicative of stagflation, and money leaving the US?” Johnson queried. He also challenged the comparison of rising German 30-year yields, attributing it to a “repricing of risk” following the new government, given Germany’s relatively low debt-to-GDP ratio.
Johnson then drew parallels to a past market event. He pointed to the confluence of factors, …