Profiting from a Recession
One of the most important indicators for recessions has just gone off, prompting many to predict that a major economic pullback is in the offing in the near future. The bond market yield-curve has inverted. In layman's terms, that means that shorter bonds are now paying higher interest than longer-term bonds. That usually happens when investors believe that the long-term outlook for the economy is bleak.
This has been a pretty steady indicator of recessions for the past 20 years. Whenever the two-year and 10-year bonds invert, a recession follows within six months to two years. (Source: ".
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One of the most important indicators for recessions has just gone off, prompting many to predict that a major economic pullback is in the offing in the near future. The bond market yield-curve has inverted. In layman's terms, that means that shorter bonds are now paying higher interest than longer-term bonds. That usually happens when investors believe that the long-term outlook for the economy is bleak.
This has been a pretty steady indicator of recessions for the past 20 years. Whenever the two-year and 10-year bonds invert, a recession follows within six months to two years. (Source: ".
Den vollständigen Artikel lesen ...