Inverted Yield Curve as Recession Predictor

Whether or not the yield curve on U.S. Treasuries is inverted can be a useful tool in forecasting the next recession, according to a recent Barron’s article. The inverted yield curve has predicted three of the past three recessions, the article says, which “helps lend confidence to its predictive powers.” Typically, long-term interest rates are […]

Sonders: Yield Curve Flattening Not Cause for Worry

While some investors have been concerned about the rapidly flattening yield curve, Charles Schwab Chief Investment Strategist Liz Ann Sonders says history shows such a trend isn’t cause for alarm. A flattening yield curve means lower profits for banks, which can borrow at lower short-term interest rates and invest at the higher long-term rates. “That […]