Did someone say slowdown? An important historical precedent is emerging which investors should keep a close eye on—it may be another signal that the U.S. is in the late stages of its current economic cycle.
The yield spread between the UST 10YR and 2YR is getting tighter. This yield spread just dropped to a “decisive” new low – and that is a key signal according to Hedgeye CEO Keith McCullough.
Before every recession over the last 40 years, “the yield curve starts to compress, then it goes inverted,” McCullough explains in the clip above. “What’s happening right now is what happens every time. The market is starting to discount the cycle, and most importantly the end of inflation.”
What should investors do when the curve starts to invert?
Watch the full clip above for more.
