The inversion of a portion of the yield curve late last week reignited fears of a US economic recession.Societe Generale has identified a group of stocks that's fared better than the broader market during downturns since the 1920s — one it says is poised to be an effective hedge against another market crash.Long-term Treasury yields have fallen below their short-term counterparts before every US recession since 1955.
For Andrew Lapthorne, the head of quantitative equity research at Societe Generale, the inversion isn't of much practical use yet.about-turn on interest rates was squarely because of its concerns about economic weakness.
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Why an inverted yield curve doesn’t mean investors should immediately sell stocksTony Dwyer, chief U.S. markets strategist for Canaccord Genuity, is urging investors to view a yield curve inversion as an opportunity rather than a death... So it’s different this time? But it’s been 100% accurate as a leading indicator in the past. So these experts and bank fool regular investors to stay in while they sell.... who gets screwed here? It means there is a relatively smedium correlation to recession in the next 26 months and is not an actual indicator of anything.
Source: MarketWatch - 🏆 3. / 97 Read more »
Morgan Stanley: Get defensive because the inverted yield curve is sending a messageInvestors should 'remain defensively positioned' on stocks, Morgan Stanley's equity strategist Michael Wilson said on Monday. Message is short rates coming down.
Source: CNBC - 🏆 12. / 72 Read more »