SAN FRANCISCO/NEW YORK - A closely watched section of the U.S. yield curve inverted on Wednesday for the first time in over 12 years, rattling investors already worried that a U.S.-China trade war might trigger a global recession and kill off a decade-long bull market on Wall Street.
A yield curve typically has an upward slope — when the yields are plotted on a graph — because investors expect greater compensation for the risk of owning longer-maturity debt. An inversion, when shorter-dated yields are higher than longer-dated ones, is considered a warning of a looming recession. “The equity market is on borrowed time after the yield curve inverts. However, after an initial post-inversion dip, the S&P 500 can rally meaningfully prior to a bigger US recession related drawdown,” Bank of America Merrill Lynch analysts wrote in a report on Monday.
S&P 500 corrections related to recessions average 32% and tend to last just over a year, according to Bank of America Merrill Lynch.
A 6x business failure is causing these yield curves.
Mr. Bean？
Get ready for the coming Trumpcession.
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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
Source: CNBC - 🏆 12. / 72 Read more »
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 »
After a key yield curve inversion, stocks typically have another year and a half before doom strikesAn inversion of the key 2-year and 10-year yields happened early Wednesday, sending stock futures reeling as traders bet this was the reliable recession indicator and the one to watch. NO - this is nonsense. Stop spreading this fantasy; in many previous cycles, stock market peaked BEFORE the 10Yr/3month inversion. 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. Yeah. 20 minutes.
Source: CNBC - 🏆 12. / 72 Read more »