The Yield Curve Recession

2 years ago
1.13K

The stock market continued its record rally, but the yield curve inversion stole the show. The 2 year and 10 year bonds inverted, meaning the 2yr bond yield is higher than the 10yr bond yield, and this is one of the age old predictors of a recession. The problem however, which we saw today, is people immediately start calling for a recession once it inverts. I explain the yield curve inversion and what it means, but also go over what you should do to respond to this appropriately. The key is the clock is starting and 12 months from now we can see economic and market effects. In the mean time though, it is not uncommon for the market to go up even while inverted. I go over all of this, then go over the peace talks that lead to the market going up and hitting the highest point since early January. On top of all this, we are also witnessing the 5th largest stock vs bond divergence in history. I also go over 3 stocks to watch for the rest of the week and 1 stock I really like that has managed to go green during volatility and during the bounce. EITHER WAY ITS GOING TO BE EXCITING SO I HOPE YOU ARE READY! POST YOUR WATCHLIST BELOW AND SEE YOU IN THE MORNING!

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