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Stocks Stumble As Yield Curve Inverts
Associated Press ^
| 27 December 2005
| Ellen Simon
Posted on 12/27/2005 10:47:43 AM PST by rhombus
NEW YORK (AP) -- Stocks stumbled Tuesday as the bond market gave signals that in the past have preceded economic slowdowns.
The yield curve, the spread between the yields of short-term and long-term bonds, inverted for the first time in five years. That means short-term interest rates are higher than long-term interest rates. Investors have been watching the yield curve closely because, in the past, inverted yield curves have usually preceded a recession.
(Excerpt) Read more at biz.yahoo.com ...
TOPICS: News/Current Events
KEYWORDS: currencycollapse; stocks
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Don't people sell off stock losers at the end of the year anyway?
1
posted on
12/27/2005 10:47:43 AM PST
by
rhombus
To: rhombus
For market/DJIA/Wall Street savvy Freepers, what is the consensus on the outlook for 2006?
2
posted on
12/27/2005 10:50:04 AM PST
by
xrp
To: rhombus
Yup, and buy them back 31 days later
3
posted on
12/27/2005 10:50:25 AM PST
by
xcamel
(a system poltergeist stole it.)
To: xcamel
If the dims get put in their place, and we don't get attacked or blind sided, it'll be another great year.
4
posted on
12/27/2005 10:51:57 AM PST
by
xcamel
(a system poltergeist stole it.)
To: rhombus
Is it me, or did this AP story have a certain amount of glee in it?
5
posted on
12/27/2005 10:53:57 AM PST
by
Lekker 1
("Computers in the future may have only 1000 vacuum tubes..." - Popular Mechanics, March 1949)
To: xrp
Dare one use the "R" word here. Inverted yields are quite predictive in this respect.
6
posted on
12/27/2005 10:54:33 AM PST
by
razoroccam
(Then in the name of Allah, they will let loose the Germs of War (http://www.booksurge.com))
To: Lekker 1
Is it me, or did this AP story have a certain amount of glee in it?I detected it too. I expect Paul Krugman will be weighing in telling us we are all doomed because of tax cuts.
7
posted on
12/27/2005 10:55:20 AM PST
by
rhombus
To: rhombus
To avoid a recession - is a good reason for tax cuts. Dems will push for higher taxes.
8
posted on
12/27/2005 10:56:55 AM PST
by
2banana
(My common ground with terrorists - They want to die for Islam, and we want to kill them.)
To: rhombus
Don't people sell off stock losers at the end of the year anyway? Yep...nothing to worry about here...its a buying opportunity.
When price/earnings ratios get to 100, then you should worry about selling...not a moment sooner...
/sarc
9
posted on
12/27/2005 10:59:37 AM PST
by
antaresequity
((PUSH 1 FOR ENGLISH, PUSH 2 TO BE DEPORTED))
To: Lekker 1
10
posted on
12/27/2005 11:02:24 AM PST
by
Recovering_Democrat
(I am SO glad to no longer be associated with the party of Dependence on Government!)
To: rhombus
11
posted on
12/27/2005 11:03:08 AM PST
by
Fiddlstix
(Tagline Repair Service. Let us fix those broken Taglines. Inquire within(Presented by TagLines R US))
To: xrp
For market/DJIA/Wall Street savvy Freepers, what is the consensus on the outlook for 2006? Look for the Wall Street Journal to have its poll of a couple of hundred ecnomists within the next two weeks. Remember: 9 out of 10 years the consensus is wrong. The problem is, you don't know if they're too high or too low.
12
posted on
12/27/2005 11:03:22 AM PST
by
groanup
(Shred for Ian)
Comment #13 Removed by Moderator
To: rhombus
Market is sensing that inflation is not a factor for the forseeable future.
14
posted on
12/27/2005 11:03:40 AM PST
by
DManA
To: rhombus
"The ecnomic forecasting ability of the yield curve has been greatly diminished."
Alan Greenspan.
We'll see.
15
posted on
12/27/2005 11:04:42 AM PST
by
groanup
(Shred for Ian)
Comment #16 Removed by Moderator
Comment #17 Removed by Moderator
To: xrp
I'm predicting that 2006 will be somewhat similar to 2005 as far as the stock market is concerned.
Keep in mind that even a "flat" market is not necessarily a bad thing, since the 2002-03 tax changes have prompted companies to distribute larger dividends.
18
posted on
12/27/2005 11:09:07 AM PST
by
Alberta's Child
(Said the night wind to the little lamb . . . "Do you see what I see?")
To: groanup
Yup, that 9% jump over last year in Xmas spending was a very bad sign of things to come, indeed. [/rat]
To: quakeroats
Gold market is reacting to a supply/demand situation. Price needs to rise until gold miners find it profitable to produce to fill the demand.
20
posted on
12/27/2005 11:11:57 AM PST
by
DManA
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