The inverted yield curve has a tendancey to predict recessions on the US economy. How is this correalted directly to the economy and by which means. Any answers or places to find them will be greatly appreciated. Thank you again.
2006-10-04 09:39:17 · 2 answers · asked by tonyspizza232 1 in Business & Finance ➔ Investing
The idea is that investors are loading up on 30-year bonds (thus driving down the price) because the outlook for the economy is so bad.
On the other hand, it could mean that investors expect interest rates to fall, so they are locking in the higher rates now.
Pay your money and take your choice. I'm staying with stocks myself, at least for now.
2006-10-04 10:58:40 · answer #1 · answered by Yardbird 5 · 0⤊ 0⤋
http://www.smartmoney.com/onebond/index.cfm?story=yieldcurve
This is a good site that may help.
2006-10-04 09:50:29 · answer #2 · answered by Zak 5 · 0⤊ 0⤋