Inverted Yield Curves. Time to Panic?

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!

Signal or Noise? Yield Curves, Economic Growth and Stock Prices

What the Inverted Yield Curve Means (and Why You Shouldn’t Worry About It)

The yield curve is flattening … just like it does every Fed hiking cycle




**Use with caution, that quote is basically Sex Panther with words.