By Alexander Green The Dow dropped more than 800 points yesterday, but it’s not time to panic.
Today, Alexander Green explains the factors affecting bond and stock yields and how investors should react to this major buying signal.
The Dow swooned over 800 points Wednesday in reaction to the “inverted yield curve.”
That means, of course, that interest rates on short-term bonds are now higher than those on longer-term bonds.
The yield curve has inverted before every recession since 1955.
Does this mean a recession – or a serious bear market – is now on our doorstep, especially given the recent trade tensions with China?
It does not.
For starters, …read more
