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What Happens When a Yield Curve Un-inverts
When a yield curve inversion happens, a recession follows after many months. What is a yield curve inversion? It is when interest rates have flipped on U.S. Treasurys with short-term bonds paying more than long term bonds. It is generally regarded as a warning sign for the economy and the markets. There are times where some inversions have not preceded recessions. An inverted yield curve is not perfect like other indicators and doesn't necessarily mean a recession is imminent.
Watch the full video on Market Locked In A 'Battle For Control' Between Bulls & Bears | Sven Henrich
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There’s no doubt that it's a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?
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IMPORTANT NOTE: The information and opinions offered in this video by Wealthion or its interview guests are for educational purposes ONLY and should NOT be construed as personal financial advice. We strongly recommend that any potential decisions and actions you may take in your investment portfolio be conducted under the guidance and supervision of a quality professional financial advisor in good standing with the securities industry. When it comes to investing, past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in partial or total loss.
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