|
|
|
|
The inverted yield curve: what does this really indicate?
(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)
The news of an inverted yield curve has been lingering around market news headlines for days. For reference, an inverted yield curve occurs when long term rates are less than short term rates. It typically indicates that the chance of an economic recession in the future is high. With those headlines glooming over the average investor, it is important to know what the inverted U.S. yield curve represents, and what the warning signs indicate.