Will Inverted Yield Curve Spark a Bear Market Correction?

There has been a lot of speculation and news coverage of the potential for yield curve inversion in the treasury bond markets.

An inverted yield curve is when shorter-term treasury bond yields are higher than longer-term. This has, at times, been a precursor to a recession.

Thus, much of the coverage has been tainted with by very bearish outcomes for both the economy and stocks.

Therefore, investors are asking, “will an inverted yield curve bring about a nasty recession and bear market for stocks?”

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In today’s video, we look at what the current price indicators and trends are saying for the stock market. We also look at history to see the relationship between yield curves and bear markets.

Let’s dig in.

Stock Market Video – For week of April 1, 2019

Click play, then you can use the button in the lower-right corner of the video image to view in full-screen mode. Hit Escape (esc) to exit the full-screen mode.

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The author or his clients may hold positions in mentioned securities at the time of publication.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.