Here's the Hideous, Scary Truth About Yield Curve Inversions

The Martians have landed in New Jersey! Chinese Army tanks are rolling in the Chicago Loop! California has fallen into the ocean! Giant robots have kidnapped the Statue of Liberty! D.C. is in flames! The yield on 10-year Treasuries has fallen below the yield on three-month Treasuries! We are doomed! Enough already - yes, last week, the yield curve inverted. So, the conventional thinking goes, we'll have a recession. Right? Maybe. When? Don't know. It could be a month or two; it could be almost two years from now. The truth is, there has been a yield curve inversion before every recession - if you don't care how long it took for that recession to develop. The historical record shows the yield curve inverted a whopping 23 months before the economy slowed in the most recent recession. So, a yield curve inversion heralds a recession in kinda the same way baseball's Opening Day "causes" the World Series, or that being born is a leading cause of death. In other words, it's a bit of a stretch - and certainly nothing you'd want to make do-or-die investing decisions on. There's a much better, much more profitable way... Tags: trading strategies To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2019 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post Here's the Hideous, Scary Truth About Yield Curve Inversions appeared first on Money Morning - We Make Investing Profitable .