By Herb W. Morgan, III, Efficient Market Advisors

The yield on ten-year US Treasury securities dropped below the yield on two-year US Treasuries August 14 prompting mass hysteria in both financial markets and macro-commentary. This event, commonly referred to as an “inversion” has happened four times in the last forty years. In each such occurrence, a domestic recession has ensued. However, making such a conclusion on four idiosyncratic events without a deeper dive into the unique circumstances of each inversion could be a rush to judgement. Continue Reading Here