This will be the 2 questions we will be discussing today 1. So, what is happening on this divergence and its implication? 2. And who is leading who? a. Large cap leading the mid-to-small cap market? Or b. The mid-to-small cap leading the large cap market? The answer: The mid-to-small cap is leading the large cap market and why is it so? If...
When the yield of the 3-month bond is higher than the 30-year bond yield, this is known as an inverted yield curve. It is a rare and unusual occurrence and we are seeing this today. This signals a potential economic recession in the future. An inverted yield curve suggests that investors have a pessimistic outlook for the future of the economy. They are willing...
Bank run crisis causes the current Fed fund rate to trade higher than the rest of the bond yields, what is its implication? As US CPI remain high, global equities will continue to be uncertain this year. Investors are now turning their attention to precious metals. Gold has started to move up since year 2000, it has appreciated more than 700%. However, the...
Content: • Difference between interest rate and yield? • Why it is important to note of yield curve inversion? • How to tell when Yields are inverted? • What is the long-term trend for interest rates and yields • How to manage a rising yield? Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • ...