Originally Posted by
TransWorld
My investment advisor and the Secretary of Commerce both stated the yield curve inversion is 1/100 of one percent. (Say 2.00% vs. 1.99%). This is hardly the inversions they have seen that leads to recession.
Yet the news media has picked up on this and are screaming recession, recession, recession. Remember blood and guts sells newspapers, as the old adage goes.
The Fed most likely will cut overnight rates when they meet next. This will bring the 2 year rate back down below the 10 year rate. The inversion will go away. The media will have to find something else to scream about.
Well consider also that cutting rates to avoid an inversion is not a sign of a strong economy.
That being said, I don't believe there has ever been a modern day recession that wasn't preceded by a rise in gasoline prices. So we do have that going for us.