Should the Coming Yield Curve Inversion Frighten Investors?

A recent article in Forbes discusses the growing buzz about an impending yield curve inversion and the repercussions for the economy and stock market. “Inverted yield curves have successfully warned about each of the seven recessions over the past 50 years,” the article reports, “which is why investors keep an eye out for them.” When an inversion takes place (the difference between short- and long-term yields falls below zero), the article notes, it “warns that… Read More

Signals from the U.S. Yield Curve

The difference between the two-and ten-year Treasury yield is the narrowest since 2007, a signal that “the market thinks the Federal Reserve’s interest-rate increases, which are driving short-term yields higher, will not only slow inflation, but could also tip the economy into a recession.” This according to a recent Bloomberg article. The article outlines several reasons “to be worried about the economy:” Trade wars: Tariffs, the article says, “will lead to some self-imposed inflation, a… Read More