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 An Indicator With A 100% Perfect Track Record Of Predicting Recessions Says That Another One Is Coming

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RR Phantom

RR Phantom

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An Indicator With A 100% Perfect Track Record Of Predicting Recessions Says That Another One Is Coming Vide
PostSubject: An Indicator With A 100% Perfect Track Record Of Predicting Recessions Says That Another One Is Coming   An Indicator With A 100% Perfect Track Record Of Predicting Recessions Says That Another One Is Coming Icon_minitimeWed Aug 28, 2019 6:14 pm

You can believe that we will somehow beat the odds this time if you want, but history is completely against you.  One of the biggest reasons why there is so much anxiety on Wall Street right now is because of how the yield curve is behaving.  We have seen yield curve inversions before each of the last seven U.S. recessions, and now it has happened again.  Perhaps this helps to explain why insiders are dumping stocks right now as if there will be no tomorrow.  If you were looking for a giant waving red flag to tell you that it is time to run for the exits, it doesn’t get much better than this.  This week, we watched the yield curve do something that it hasn’t done in 12 years…

   The spread between the 10-year Treasury yield and the 2-year rate fell to negative 5 basis points, its lowest level since 2007. This is called a yield curve inversion. Experts fear it because in the past it has preceded recessionary periods. The 3-month Treasury bill rate also traded higher than the 30-year bond yield.

   “The primary thing is yields are going down and going down with some acceleration,” said Art Cashin, the director of floor operations at UBS.

An Indicator With A 100% Perfect Track Record Of Predicting Recessions Says That Another One Is Coming Bfm3F2A_0

In addition, the spread between 3 month Treasury bonds and 10 year Treasury bonds just hit negative 50 basis points.  We haven’t seen that happen since March 2007.

And as David Rosenberg has noted, when the spread between 3 month Treasury bonds and 10 year Treasury bonds goes negative for at least three months, we have a recession 100% of the time…

https://www.zerohedge.com/news/2019-08-28/indicator-100-perfect-track-record-predicting-recessions-says-another-one-coming?fbclid=IwAR2qUdy_KOrLB70LhgaSQAS09ZFVun6U17Ao9UDkJHIMzS7R0CTIFWkr3RA
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An Indicator With A 100% Perfect Track Record Of Predicting Recessions Says That Another One Is Coming

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