#invertedyieldcurves

[certaincollections]

As investors, we should care about what is happening in the greater macroeconomic scheme of things because these signals tell us what shifts we need to prepare for. Your investing strategy and portfolio should not be the same throughout different cycles. We have to adapt for times of growth and times of recession. Understanding how to read these economic signals will help yo

[beefent-blog]

#Dji $Spy #Dowjones #Hawkish #Bullmarket📈 #Bullish #Options #Futures #Pinksheets #Pennystocks #Bitcoin 27,000 #Invertedyieldcurve https://www.instagram.com/p/B2Slm1hDOBE/?igshid=12l5qkdahthbg

[immigrationnewsdigest]

Tired of winning yet? So much winning. Thanks for sharing. #invertedyieldcurve #recession #stockmarket #trumptaxcuts @laloalcaraz @co_rapunzel4 @MaggieJordanACN @AprilDRyan pic.twitter.com/eRlFlszzTM

— Ed Hall (@halltoons) August 15, 2019

[davidnelsoncfa]

If jobs are hot why do I see a recession on the horizon?

If the #Jobs market is so Hot, why do I see a #recession. Dig Deeper! #cloud $msft $crm #jolts $wcld #inflation #fed #invertedyieldcurve

By David Nelson, CFA CMT This is what we do. Month after month week after week.Traders, fund managers, advisors and even you at home. We wade through a mountain of economic data looking for clues as to just how good or bad the economy and some of the companies we follow are doing.Why, because in the long run the data gives us a read on the economic backdrop and in the end how your financial…

[fnewstoday]

What Does Inverted Yield Curve Mean and How to Deal With It

For professional investors talks about inverted yield curve is common, but for most ordinary people such phrase is a complete abstraction. Let's try to figure out what it is and why they talk about it so much? And why it can be inverted? The answer to the last question is in the word called a recession. What exactly is this inverted yield curve The inverted yield curve is a value showing yield or interest rates for different bond issues. Usually, the longer bond maturity date (longer it’s circulation period), the higher yield of such bond is. In some ways, it resembles a bank deposit. The longer the term of deposit, the higher is the rate. For example, when you deposit cash for three years, you have the right to expect a higher yield than when you deposit funds just for 6 months. Why is that? You put your funds at greater risk by placing them for a long time, therefore justify higher returns, if there is no general market reduction in the future. Another example, if we take 2-year bond with 2% to pay, and 5-year bond with 2,5% payable, then in total the yield curve will have 0,5%. Thus, a curve is the same as credit quality. This can be seen in the cases when bonds are absolutely identical in terms of their conditions, and their only difference can be in the maturity date and in profit. It is possible to shape a yield curve from different bonds. Although best known today benchmark shows yields comparison of U.S. Treasuries on 2-years, 5-years, and 30-years. So that is about what most of the experienced economists talking in their inverted yield curve discussions. U.S. Treasury serving is a very important and perhaps evens critical indicator. This is because a fact that most banks and large financial funds and organizations, as well as many governments, take these indicators into account in their calculations. Today it is believed that U.S. Treasury is the safest investment haven. The level of assurance that you will get a certain return on your investment is very high and without much risk. The interest rates of this financial instrument are universal and can change their values ​​in a fairly narrow framework since this is due to the high security of the bonds themselves. At the same time, if situation in the financial markets develops in a negative way, the yield may show significant growth and Treasuries have to raise interest rates in order to compete with other investment instruments. And in case of a positive situation of development in the American economy, a value of yield will decrease.

The-inverted-yield-curve-is-a-value-showing-yield-or-interest-rates When something went wrong However, sometimes, markets are under pressure from adverse factors, while curve reflects these changes. Sometimes bonds with long-term rates may be same as rates on short-term issues. This is a plane yield curve. Sometimes yield on long-term bonds falls below short-term, and then yield curve becomes inverted. These contain an indication for markets concern and in general for the international development. How curve can change It can be constructed for any bond, but there is one specific curve, around which most of the talk in media is conducted. The State bonds is issued by the US Treasury to finance its activities. This curve shows a difference in returns between ten years and two years issues, which historically is an indicator of the health status of the economy and markets. And despite the fact that this curve looked “normal” since the financial crisis of 2008, it is now gradually smoothed out. In 2012, a difference in ten years and two years bonds was 1.95%. Today, this difference is only 0.25%! Why is it so important There are different opinions on what the current inverted yield curve may mean for markets. Lots of experts who say that this time situation is different from the classical one. As a justification, they cite the fact that economy is predetermined. Moreover, this is not the first case when dynamics of the markets did not conform to the “pattern” of crisis behavior. In any case, reason why the inverted yield curve has become such a frequent topic of conversation, is simple: it often precedes recessions in the United States! it often precedes recessions in the United States! And this may lead to a situation where demand for bonds with longer-term investments will increase over short-term placements. Investors will seek more security. There can be also bigger worries over money-losing and even the possibility of obtaining a good profit is hardly considered by people and funds. This has happened more than once and there is no guarantee that it will not happen in the near future. You can recall how this occurred in the recent past. During recessions, inverted yield curve reached negative values of 2-year treasuries in relation to the 3 and 5-year-olds. And if take as an example such years as 1978 or 1988, we can see that then treasuries could foreshadowing recessions. Only once in a recent history curve has strongly dipped, but this did not last longer than a month, then yield curve fully recovered and went into positive values. When a new crisis will start this time The time lag between spread going in the negative zone and the beginning of the recession, ranged from 6 to 24 months, according to the Federal Reserve Bank of San Francisco. However, now the situation has not reached a critical point. The spread has greatly decreased but remains positive. Consequently, time must pass to form a fully invested yield curve. Therefore, many economists estimate a probability of a recession on the horizon to be less than 20%. Many other indicators telling about continued economic growth. However, investors are frightened by the prospects for ending effect of tax incentives and trade wars. In the first half of the year, American economy was spurred on by Donald Trump's initiatives. However, with the growth of the Fed's rates, positive factor began to dry up. Interim congressional elections have increased political split, so it will be harder for Trump to promote his fiscal initiatives.     Read the full article

[babyawacs]

‎#invertedyieldcurve @reuters @ap @beckyquick @bbc_whys @france24 @wsj @ft @tictoc All the recent yearsmarkets were a centralbanks gift There must be a consolidation now smartmoney is long positioned safely from it and keeps quiet abou t it‎ ‎ Consider howmuchof the positive mess is stockbuybacks‎ ‎ Economics background (in contrary to chart astrology): ‎ There was literally nothing else that canbe bubbled Tech? Realestate?art?  The technological change and globalisation made structural problems in many economies He centralbanks had to softland alot of structural debt Heroically  But at somepoint it must normalise Consider bots dampen some effects until they suddenly flashcrash ‎Caution with etfs now? ‎ ‎ ‎ ‎ I am Christian KISS BabyAWACS – Raw Independent Sophistication #THINKTANK + #INTEL #HELLHOLE #BLOG https://www.BabyAWACS.com/ Inquiry@BabyAWACS.com PHONE / FAX +493212 611 34 64 Helpful? Pay. Support. Donnate. paypal.me/ChristianKiss

#invertedyieldcurve @reuters @ap @beckyquick @bbc_whys @france24 @wsj @ft @tictoc

All the recent yearsmarkets were a centralbanks gift There must be a consolidation now smartmoney is long positioned safely from it and keeps quiet about it

Consider howmuchof the positive mess is stockbuybacks

Economics background (in contrary to chart astrology): There was literally nothing else that canbe bubbled

[liberbits]

Wat is het belang van een #omgekeerde #rentecurve op de #Amerikaanse #staatsobligaties? Wat zijn de mogelijke implicaties van een #InvertedYieldCurve en de Amerikaanse overheid? https://t.co/Nwap6nDmAt

Wat is het belang van een #omgekeerde #rentecurve op de #Amerikaanse #staatsobligaties? Wat zijn de mogelijke implicaties van een #InvertedYieldCurve en de Amerikaanse overheid? https://t.co/Nwap6nDmAt

— LiɃerBits (@LiberBits) August 15, 2019

from Twitter https://twitter.com/LiberBits August 14, 2019 at 11:56PM via IFTTT

[rarecoindealer]

https://t.co/bndbrKKxja (Kitco News) - The bond yield curve inversion is triggering a new move... #Kitco #InvertedYieldCurve #Bonds #PreciousMetals #SafeHaven #PreciousMetals #Gold #Recession #InternationalMonetaryReset #Silver Protect - Preserve - Prosper https://t.co/rDROJQiaSB

https://t.co/bndbrKKxja (Kitco News) - The bond yield curve inversion is triggering a new move...#Kitco #InvertedYieldCurve #Bonds #PreciousMetals #SafeHaven #PreciousMetals #Gold #Recession #InternationalMonetaryReset #Silver Protect - Preserve - Prosperhttps://t.co/rDROJQiaSB

— Brett Edgell (@mplsbrettsr) August 14, 2019

from Twitter https://twitter.com/mplsbrettsr August 14, 2019 at 10:41PM via IFTTT

[sergepoznanski-blog]

@investir_ch: Chronique du jour : L'INVERSION DE LA COURBE EST DE RETOUR - mais tout le monde s'en tape parce que Trump TWEET... #bourse #finance #chronique #tarifs #tradedeal #trump #invertedyieldcurve #inversion #crierauloup #tweet #twitter https://t.co/rHWfaqwycB

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[rarecoindealer]

https://t.co/LuCXXiHGRs On Friday, US Treasury yields plunged the most since the start of the Great Recession. This is the biggest recession warning since 2007. #mishtalk #DanielleDiMartino #treasury #invertedyieldcurve #recession #riskoff #timetohedge #safehaven #gold

https://t.co/LuCXXiHGRs On Friday, US Treasury yields plunged the most since the start of the Great Recession. This is the biggest recession warning since 2007.#mishtalk #DanielleDiMartino #treasury #invertedyieldcurve #recession #riskoff #timetohedge #safehaven #gold

— Brett Edgell (@mplsbrettsr) May 28, 2019

from Twitter https://twitter.com/mplsbrettsr May 29, 2019 at 12:32AM via IFTTT

[rarecoindealer]

https://t.co/FlguN74zcL When long-term rates are lower than short-term rates, the yield curve is "inverted," which is a signal that has preceded recessions in the past with remarkable accuracy. Last Thursday #investopedia #invertedyieldcurve #bonds #safehaven #gold #recession

https://t.co/FlguN74zcL When long-term rates are lower than short-term rates, the yield curve is "inverted," which is a signal that has preceded recessions in the past with remarkable accuracy. Last Thursday#investopedia #invertedyieldcurve #bonds #safehaven #gold #recession

— Brett Edgell (@mplsbrettsr) May 28, 2019

from Twitter https://twitter.com/mplsbrettsr May 28, 2019 at 11:57PM via IFTTT

[sergepoznanski-blog]

@investir_ch: Chronique du jour : Le retour des dents de la mer sous la forme d'une nouvelle inversion de la courbe des taux. La fin est proche. La récession frappe à nos portes. Restez à couvert #bourse #finance #chronique #requin #InvertedYieldCurve #recession https://t.co/G0bbovAw88

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[sergepoznanski-blog]

@investir_ch: Chronique du jour : Tariff Man ou SuperCon ? - Bref, on s'est fait démonter.. #bourse #finance #chronique #tariffman #trump #china #tradewar #supercon #yieldcurve #invertedyieldcurve #rates #telenovela #marvel #vivementlesvacances https://t.co/5kkMGHv8rr https://t.co/PUeu32qdvs

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