The inversion is when short term interest rates (in this case 2 years) are higher than long term interest rates (in this case 5 years) ... but I am sure you knew that, didn't you?
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"Prediction is very difficult, especially about the future" (Niels Bohr)
The inversion is when short term interest rates (in this case 2 years) are higher than long term interest rates (in this case 5 years) ... but I am sure you knew that, didn't you?
The 10/2 curve is the real one to worry about not the 5/2.
The 10/2 curve is the real one to worry about not the 5/2.
Sure, the 10/2 is more often cited ... but the 5/2 is already inverted - this is the reason I used this one as example.
Anyway - nothing is certain .. and the current downturn is anyway too early given the typical timelag to the interest rate inversion (6 to 18 months). Must be Trumpmade. One can't really rely on anything ...
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"Prediction is very difficult, especially about the future" (Niels Bohr)
The inversion is when short term interest rates (in this case 2 years) are higher than long term interest rates (in this case 5 years) ... but I am sure you knew that, didn't you?
BP
Maybe what I was trying to say yesterday is best said by guru aswathdamodaran
The current role played by machines, (algo-trading) is excessive in the American market. We all understand that they react quicker than humans, but just like self drive cars there are some seriously dangerous flaws in the logic that blinds them to unusual circumstances. Flash crash is a warmup for flash annihilation.
Originally Posted by dobby41
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