As the talking heads and market pundits wring their hands and spout off, it seems that the consensus bogeyman is an inverted yield curve. But what is that exactly? —Recommended Link— Good News: Crash Insurance For Just $167 Smart people usually don’t take crazy risks. There’s only a tiny 0.03% chance that your house will burn down this year. That’s just one in 3,000. But you still pay for insurance, just in case. Now here’s what we don’t get: there’s a 41% chance our president is going to be impeached… maybe even booted out of… Read More
As the talking heads and market pundits wring their hands and spout off, it seems that the consensus bogeyman is an inverted yield curve. But what is that exactly? —Recommended Link— Good News: Crash Insurance For Just $167 Smart people usually don’t take crazy risks. There’s only a tiny 0.03% chance that your house will burn down this year. That’s just one in 3,000. But you still pay for insurance, just in case. Now here’s what we don’t get: there’s a 41% chance our president is going to be impeached… maybe even booted out of office… and millions of investors are facing that risk head-on. History shows that could cut your entire portfolio by 48%. Good news though: you can hedge against that possibility for just $167. Get all the details here… In literal terms, when short-term bond rates are higher than longer rates or the spread between them is narrow, things can get weird. Markets and investors tend to favor a steep yield curve. Higher long-term rates suggest inflation which suggests higher economic growth which begets corporate earnings growth. The result is higher stock prices. Sounds like the “If You… Read More