Shape of the Yield Curve May Be Best Economic Indicator

bigstock Stock Market Analysis 570645Of all the indicators analysts watch to guage where we are in the economic and market cycle, the bond market - and more specifically the shape of the yield curve - gets it right more often than any other.

The Federal Reserve Bank of San Francisco recently noted "Every recession in the last 60 years was preceded by a negative term spread, that is, an inverted yield curve." The current shape of the yield curve is telling us what we already know: that we are not at the end of the cycle but are getting closer. The cycle likely still has room to run. 

Please click here to read more about this investment topic.

 

Ultra-Short-Term-Bonds Reduce Volatility While Pro...

Related Posts

By accepting you will be accessing a service provided by a third-party external to https://www.broadreachwealth.com/

07 June 2019
Wealth Management
U.S. equities have generally dominated broad global equity indices over the last ten years, and many investors are wondering if globally diversified portfolios still make sense. I recently ran across a brief and very basic piece from Vanguard, that v...
17 May 2019
Wealth Management
There are many reasons you may consider naming a trust as beneficiary of your retirement plan or IRA. The most common reasons are: 1) The beneficiary is a minor or is disabled (special needs). 2) The beneficiary is not financially responsible, a...
27 April 2019
Wealth Management
Below is a portion of a recent article from "The Motley Fool". The author makes a few very good observations about long-term investing in the U.S. stock markets. None of these observations are new or unique, but I think they are well worth reviewing....
25 April 2019
Wealth Management
When investing in equities, it is very helpful to view volatility from a long-term perspective. As illustrated by the charts below:  the longer an investor holds stocks, the more likely the investor receives an overall positive return. (For exam...
21 February 2019
Wealth Management
Over the last decade, U.S. equities have outperformed equities from other countries around the world, and globalization has increased correlations between U.S. and non-U.S. stocks. Many investors, including professional money managers and advisors, h...
21 February 2019
Wealth Management
Over the last decade, U.S. equities have outperformed equities from other countries around the world, and globalization has increased correlations between U.S. and non-U.S. stocks. Many investors, inc...
14 May 2018
Wealth Management
One of the primary disadvantages to investing in individual municipal bonds is cost. “Markups” on individual muni bonds can be large. The lack of transparency of these costs made it very hard for an i...
08 May 2018
Wealth Management
With interest rates now rising and the Fed expected to continue to raise it’s Fed Funds rate by 25 bps at each of the next few quarterly meetings, we expect treasury yields to increase as well. Genera...
03 August 2018
Wealth Management
For many decades now, research has shown that investing in international equities can help reduce volatility in a portfolio while preserving or increasing long-term returns. While institutional invest...
27 April 2019
Wealth Management
Below is a portion of a recent article from "The Motley Fool". The author makes a few very good observations about long-term investing in the U.S. stock markets. None of these observations are new or ...

Broad Reach Wealth Management
Phone 941-306-4621
Fax 941-306-4622

1800 Second Street
Suite 700 C
Sarasota, FL 34236

Image
Image

Copyright © 2020. Broad Reach Wealth Management. All rights reserved. 

Web Design and Hosting by Concept Digital Media