There's a group of stocks that’s helped investors survive the worst crashes since the 1920s — and it looks like the perfect hedge for an inverted yield curve

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There's a group of stocks that’s helped investors survive the worst crashes since the 1920s — and it looks like the perfect hedge for an inverted yield curve
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The yield-curve inversion has reignited fears of a recession.

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The inversion of a portion of the yield curve late last week reignited fears of a US economic recession.Societe Generale has identified a group of stocks that's fared better than the broader market during downturns since the 1920s — one it says is poised to be an effective hedge against another market crash.Long-term Treasury yields have fallen below their short-term counterparts before every US recession since 1955.

For Andrew Lapthorne, the head of quantitative equity research at Societe Generale, the inversion isn't of much practical use yet.about-turn on interest rates was squarely because of its concerns about economic weakness.

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Why an inverted yield curve doesn’t mean investors should immediately sell stocksWhy an inverted yield curve doesn’t mean investors should immediately sell stocksTony Dwyer, chief U.S. markets strategist for Canaccord Genuity, is urging investors to view a yield curve inversion as an opportunity rather than a death... So it’s different this time? But it’s been 100% accurate as a leading indicator in the past. So these experts and bank fool regular investors to stay in while they sell.... who gets screwed here? It means there is a relatively smedium correlation to recession in the next 26 months and is not an actual indicator of anything.
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