What’s the Deal With That Inverted Yield Curve? A Sports Analogy Might Help

“The financial world has been atwitter about the inversion of the yield curve. It is a phenomenon in the bond market in which longer-term interest rates fall below shorter-term interest rates, and has historically been a warning sign that a recession could be on the way.

This all seems obvious to people who are steeped in bond market math and the workings of fixed-income markets, and can be completely perplexing to those who are not.

Maybe a sports gambling analogy will make the intuition clearer.”

Read more from The New York Times…

 

OWM provides financial planning, investment management, and retirement coaching to affluent individuals, business owners, and families.