After the yield curve inverts, stocks typically have another year and a half before doom hits

  • 📰 CNBC
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Historical analysis shows that stocks typically have another 18 months to rally after an inversion before equity markets turn lower.

Wang Ying | Xinhua News Agency | Getty Images

and sent stock futures reeling as traders bet this was the reliable recession indicator and the one to watch. The market rallies more than 15% on average in the 18 months following the inversion, only thereafter turning downward. Sequential losses can start to add up after 18 months, Golub's analysis showed. Yields fall as bond prices rise.

"The BofAML US Economics team suggests that recession risks are rising. The 3-month T-Bill vs the 10-year T-Note curve has already inverted and the risk is that the 2s10s curve inverts as well," BofA technical strategist Stephen Suttmeier.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Just in time for my retirement. Thanks deplorables.

Right around election time....

Ya know. It REALLY seems different this time. This may be a European-Induced Inversion. Not of OUR creation. Which doesn't mean a Recession isn't on it's way. Maybe the timining is cockeyed, however.

stut up you permabull charlatans - there is NOTHING typical about this cycle - rates are at unprecedentedly low levels globally and thanks to QE NOBODY has any idea what will happen next and in what timeframe

The inversion is not Telegraphing a recession. It is being created by Currency manipulations by Germany and China. (Who coincidentally both would pay almost anything to have Donal Trump lose the next election, they don’t like America first at all)

the 2/10 inverted...wow didn't see that coming. Wake up people

Look up Don’t fear the yield curve

Oh well perfect timing for trump either way. If he loses (Lol yeah right) he can say see you elected a socialist and then boom right away recession. If he wins then who cares if there’s a recession because we still have trump and he will keep yelling at libs.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bond market close to sending biggest recession signal yetThe bond market could soon send its loudest recession warning yet, if the closely watched 10-year yield falls below the 2-year note yield. 🇺🇸Hey America Due to Trump's actions, the stockmarket & the economy are about to crash..worse than 2008. Trade wars Frozen assets & bank accounts Internet censorship War on Democrats, women's rights, minorities & the Press PURE TYRANNY Your $ is not safe in the US StayAlert Scare campaigns Talking heads. ScareTactics
Source: CNBC - 🏆 12. / 72 Read more »