Blackstone warns that stocks normally rally when bond yields invert, so recession still a risk

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

Philippines News News

Philippines Philippines Latest News,Philippines Philippines Headlines

'The yield curve never inverts when conditions are bad. It inverts when conditions are good,' Blackstone's chief investment strategist says.

That spread has been in and out of inversion several times since it first flipped earlier this month for the first time since before the 2008 financial crisis.

"We know we can start our countdown timers" to a recession, Zidle said. "It's an average of about 20 months." An inverted yield curve has preceded every U.S. recession in the last half-century, but sometimes it takes up to two years before the economic downturn occurs. An inversion occurs when short-term bonds pay out higher yields than long-term bonds.

Not all market watchers are sold on the reliability of bond yield inversions as a recession indicator. Some suggest things may be different this time, in part because an increasingly negative yields on overseas bonds has

 

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

2/2 This would suggest that conditions are not good.

The curve “inverts when conditions are good.” That’s correct, because the inversion is caused by the Fed taking away the punch bowl at the short end of the curve. This time it is different. The curve is inverting because of downward pressure on the long end of the curve. 1/2

That’s correct ✅✅✅

If there is a rally during the so called inverted yield it means they don’t care.

So blackstone caught short , thanks for warning ,close your short and keep your advice .

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 PH

Philippines Philippines Latest News, Philippines Philippines Headlines

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

Stocks fall for second day as investors watch yield curve, U.S.-China trade fight, BrexitStocks traded lower Wednesday as investors gauged the potential recession signal offered by the inverted U.S. Treasury yield curve, while the intensifying... Up +24 at 10a. Dip
Source: MarketWatch - 🏆 3. / 97 Read more »

Asia stocks set to open little changed as investors watch US Treasury yieldsStocks in Asia were poised to open little changed on Thursday as investors continue to watch the yield curve in U.S. Treasurys, which inverted further overnight. Fake news . CNBC is fast becoming another product of leftist propaganda. Used to watch daily, now only Squawk Box & Cramer. The rest seems to be naysayers prone to political views & pushing recession fears. Do your own homework, buy quality stocks with good dividends. CNBC spread the fear in the market for hidden reasons , most of the time I stop to listen to this tv channel anymore .
Source: CNBC - 🏆 12. / 72 Read more »

The market's safest assets are offering investors record-low returns — and it's left them no place to hide from recession fears'It's certainly scary when you see yields fall so sharply, and when you see the yield curve inverted,' said Collin Martin of Charles Schwab.
Source: BusinessInsider - 🏆 729. / 51 Read more »