Let Us Not Rush to Judgement on the Yield Curve Inversion

August 16, 2019 EMA in the News, Our Press Room

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

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