In the past year and a half or so, there’s been lots of talk about the U.S. yield curve essentially inverting.
So today, I wanted to make a couple of important points about it that’s important for you to see.
As you know, the yield curve visually depicts how bond maturity dates and interest rates relate for bonds of similar credit quality.
Its shape reflects investor expectations and the current economic health. Analyzing the curve helps compare short and long-term bond yields and understanding the bond market’s broader economic influence.
What you can see on the U.S. treasuries yield curve chart right now is an inverted yield – meaning longer-term interest rates are less than short-term interest rates.
The reason I’m bringing this all up is because there’s been talk about when the U.S. yield curve inverts, it automatically means the economy will fall apart.
That’s not true.
However, the real problem occurs when this happens… which has already slowly begun.
In today’s 3-minute video, I show you exactly what has me concerned, and what to pay attention to.
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