With the recent short-end (3yr-5yr) yield curve inversion, more and more financial talking heads are talking about this being the beginning of the end. The 10y-2y hasn’t inverted but “seems” to be getting close (today the spread got down to 12 basis points = .12%)
We’re not worried. We’re not even close to a recession or a crash.
Yield Spreads will be covered more in depth as a recession indicator, but for now just know that people dropping this term on TV are doing it to sound smart and scary and we’ve got quite a bit of wiggle room before an inversion. Also “the 10 year-2 year yield spread, hasn’t inverted yet and typically precedes recessions by an average of 16-18 months, we’ve got time” will guarantee you sound like a total badass in a bar conversation.**
See below for more wild and wacky financial porn!
**Use with caution, that quote is basically Sex Panther with words.