The financial markets are currently experiencing significant turbulence, with the US Dollar, oil prices, and bond yields all declining simultaneously. This rare occurrence is being interpreted by analysts as a powerful signal of potential market instability. Concurrently, various recession indicators are flashing major warning signs. The median probability of a recession is reported to be 30%, according to Reuters. Additionally, the 12-month forward implied change in the Fed Funds rate suggests a 98% chance of a recession within the next year. Rates markets are also pricing in a recession, with odds of an economic downturn before 2026 now at 50%, up from 40% a month ago. Despite some surveys indicating expectations of a soft landing, the consensus in rates markets points towards a full-blown recession. Markets typically drop around 30% during recessions.