The Yield Curve Is Now Irrelevant
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}(window));Seeking AlphaThe Yield Curve Is Now IrrelevantFeb. 7, 2020 8:52 AM ET|| Includes: DDM, DIA, DOG, DXD, EEH, EPS, EQL, FEX, HUSV, IVV, IWL, IWM, JHML, JKD, OTPIX, PSQ, QID, QLD, QQEW, QQQ, QQQE, QQXT, RSP, RWM, RYARX, RYRSX, SCAP, SCHX, SDOW, SDS, SH, SMLL, SPDN, SPLX, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TNA, TQQQ, TWM, TZA, UDOW, UDPIX, UPRO, URTY, UWM, VFINX, VOO, VTWO, VVby: Todd SullivanTodd Sullivan Hedge fund manager, long/short equity, valueValuePlays.cls-1{fill:#024999;}SummaryThe Wuhan Virus scare is the 5th Recession scare since late 2018. This can be seen in the T-Bill/10yr Treasury rate spread as it dips below 0.20% and then goes negative producing an inverted yield curve.
The issue at hand in the current cycle is that markets never repeat.
Two significant differences involve changes to the banking industry and the globalization of investment markets.
The Wuhan Virus scare is the... Read more