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To: Disestablishmentarian
Thanks. I have seen a few members of the Trump economic team attempt to explain this on Fox Business channel; but, it never seems to sink in.

Furthermore, nobody ever truly explains what is meant by “Inverted yield curve,” which is not at all a common-sense notion available to every intelligent person, or even to those involved in business or the stock market.

Yet they're using this sound bite to hype a non-existent 2020 “Trump Recession.”

So I thought I'd give it a go. Really appreciate your giving my long post a read.

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Right. Few, if any of the news readers or their producers understand the yield curve.

Most of the trump team surrogates don't do a good job of framing the inverted yield curve issue either.

“The trump recession” resulting from an inverted yield curve is just another in a long line of attempts by MSM, never trumpers, DNC, Clowns to smear POTUS

as you accurately described the world wide economic conditions have investors & institutions in a bidding war to lock down a 2.10% - 1.75% return on their money.

You are correct that many countrys are paying investors much less than they can capture on US Treasury bonds. High demand for bonds results in lower yields all the way out the maturities on the yield curve.

US dollar investments got a big boost from china devaluing their currency to top things off.

Historically, inverted yield curves ultimately end up in an economic recovery as the yield curve returns to its normal slope of lower short term maturities & higher rates on longer term maturities.

1,086 posted on 08/17/2019 5:52:17 PM PDT by thinden
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To: thinden
Historically, inverted yield curves ultimately end up in an economic recovery as the yield curve returns to its normal slope of lower short term maturities & higher rates on longer term maturities.

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My guess is that eventually--and not far off--investors will figure out there is no recession coming and start to look at U.S. equities for a superior Dollar-denominated rate of return.

Don't know if you are a chart watcher, but this never looked or felt to me like a stock market top.

1,204 posted on 08/18/2019 9:26:51 AM PDT by Disestablishmentarian
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