Yield curve inverted BIG TIME!

Discussion in 'Economics' started by myminitrading, Nov 30, 2006.

  1. This cannot go on the inversion in toooooo deeep now.
  2. why not??

    inversion is bullish baby$$$

    go MARKET!!
  3. Generally speaking, the yield curve is a negative for stocks. However, the stock market will wait until the yield curve reaches its maximum inversion. Then, the stock market will drop while the curve flattens/steepens.
  4. The current spread between the TNX and IRX is -0.43%. Back in 2000, the largest (inverted) spread was -0.62% (on a weekly closing basis).

    Of course the yield curve is just one of many factors affecting stocks and the economy. But a very important one.
  5. Nothing to worry about, just Mr. Market and Mrs. Central planner arguing. I think Mr. Market is most convincing. Lower inflation isn’t necessary bad either. Lower dollar, more export good for the stock market.
  6. Its global flows pushing yields to tiny levels. There is so much money out there that it literally has nowhere to go. We are in the midst or perhaps close to the end of the greatest credit mania in the history of the world.
  7. So, are you supposed to borrow to the hilt then and convert worthless money into hard assets (as private equity is now doing), or should you just pay off everything and go sit in a bunker in wyoming waiting for the end of the world, debt free and coccooned to the hilt?

    j/k, you are somewhat right but the likelihood of this credit bubble ending anytime soon is decreasing.
  8. I think a little of both is the best. And your right, I have no idea when or how this ends.
  9. The yield curve today shows future prosperity....
    #10     Nov 30, 2006