For the first time this year, the 10Y-3 bond yield curve officially went red and inverted on 10/21.
In a healthy economy, the longer the maturity, the great the yield or return. When the economy is not doing well, the yield curve will be inverted. This is a huge warning.
The last seven inversions of this yield curve have predicted the last seven recessions going back to 1970. It also preceded the recessions by six months or more.
This TikTok explains it really well:
When something like this happens, it usually signals a warning for a major recession to take place. This is not meant to scare you, this is meant to prepare you for the upcoming future of our economy. This presents a unique situation for people to take advantage of the economic environment. No matter what the market is doing, you will be able to make money. Be prepared.
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