AftabAli

Don't Forget About the Bond Market

In 2019, we saw the most recent inversion of the yield curve relevant to this particular debt cycle. Looking back at the past two recessions, it's clear that the widening of yields following inversion is when stocks hit their most elevated levels. However, as the yield curve continues to widen, higher long term rates compress equity multiples and the result is a sell off in the equity markets. Tread lightly.

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