How the Inverted Yield Curve Reliably Predicts Recessions.

The inversion of the treasury bond yield curve has predicted every US recession over the last 50 years. And just last week, it inverted again... Twice. More specifically, economists tend to look at the 10/2 spread, or the difference in yield between the 2-year treasury bond and the 10-year. If the spread goes negative (over the past 50 years) we get a recession. But despite seeing the 10/2 spread invert, does this spell doom and gloom for investors? Or is it a fluke that this recession indicator has nailed it for the past 50 years?

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★ ★ CONTENTS ★ ★
0:00 The Yield Curve Inversion
0:55 Government Bonds Explained
2:03 Bonds on the Open Market
4:24 The Yield Curve
6:32 The Current Situation
7:28 The Predictor of All Recessions?
8:06 Limitations of the 10/2 Spread
10:16 Sharesight

DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.

#recession #stockmarket

Видео How the Inverted Yield Curve Reliably Predicts Recessions. канала New Money