Yield Rate Inversion = End of Times


We have all recently heard of the U.S. Bond Yield Rate inverting. This means that in addition to all of the other indicators that have been pointing to the end of time (pandemic, global supply chain breakdowns, WW3, some dude riding into town on a pale white horse while it rains frogs…) we now have this new thing to talk about.

So, the spread between the 2yr and the 10yr has gone negative or “inverted” recently. It only lasted like a day btw… but somehow this magical indicator has signaled to people all over the world that fiat is crashing, the equity makertes are doomed, and everything that is in a bubble will be exploding soon. But that really isn't the case guys… It is true that of the 28 times this has happened since 1900, 22 were followed by a recession, but did you know that over the last 6 yield inversions since 1975 the equities markets continued to rise for at least 12 months following?

So with our window of a year before the seas boil and rivers run red with the blood of TA Experts, what are you doing to position yourself? Rolling into value stocks like VTV? Buying up energy stocks as the Euro area struggles to find an exit from Russian oil over the next couple years? How are you ensuring your portfolio survives the next apocalypse?!


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