After a key yield curve inversion, stocks typically have another year and a half before doom strikes

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

The fearsome inversion of the key 2-year and 10-year yields finally happened early Wednesday, sending markets reeling.

Strategists first started publishing research on yield-curve data last summer, when a rise in short-term rates narrowed the spread between the 3-month bill rate and 10-year yield to levels not seen since the financial crisis. That part of the curve eventually inverted, but stocks continued to hit new highs.occurred early Wednesday

Stocks typically have 18 months of gains following inversion of the 2-10 spread until returns start to turn negative, Credit Suisse data showed. Echoing Golub's analysis, Bank of America Merrill Lynch cautioned on Monday that the "S&P 500 [is] on borrowed time if the 2s10s yield curve inverts."

 

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Their is no sign of recession till 2020

Yeah. 20 minutes.

Yeah, sometime that you guys and ur money managers friends need to unload their long positions to the least expected retail crowds, RIGHT? as u exactly did at end of 2000 and 2007.

NO - this is nonsense. Stop spreading this fantasy; in many previous cycles, stock market peaked BEFORE the 10Yr/3month inversion.

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After the yield curve inverts, stocks typically have another year and a half before doom hitsHistorical analysis shows that stocks typically have another 18 months to rally after an inversion before equity markets turn lower. 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. Look up Don’t fear the yield curve the 2/10 inverted...wow didn't see that coming. Wake up people
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These stocks are dependable winners after the yield curve invertsUtilities and consumer staples are the best performing sectors after a yield curve inversion.
Source: CNBC - 🏆 12. / 72 Read more »