- Mar 28
- 4 min
What a Yield Curve Inversion Really Means
The changing relationship between short- and long-maturity U.S. Treasury bond yields is once again a hot topic. As the yield curve flattens, analysts are starting to warn about a possible recession. So, what implications does the yield curve really have for equity and fixed income returns? Positive, Inverted, and Flat Yield Curve At most times, long-maturity Treasury bonds offer higher yields than their short-maturity counterparts. This pattern is called an upward sloping, no
- Mar 15
- 3 min
3 Very Important Reasons Why You Should Not Sell Your Stocks Now
Since January 3, 2022, the stock market has taken an unfriendly turn to investors. Initially, 40-year high inflation and the fear of higher interest rates pushed prices lower. Then, on February 24, Russia invaded Ukraine, compounding the concerns of a broader military escalation and of a recession caused by skyrocketing energy and food prices. Admittedly, even the most unemotional investors may be hard-pressed to maintain their composure under these conditions. So why should
- Mar 8
- 3 min
Why we are not "buying the dip"
The trifecta of inflation, higher interest rates, and the War against Ukraine has pushed the US equity market into a correction (a decline greater than 10% from the previous high). For long-term investors, we would typically be adding positions at this point. Market corrections are common and should not be feared if the economic fundamentals remain healthy. Today's economic fundamentals are still ok We look at three readily available sets of indicators to assess the state of
