Most every piece of economic data suggest our domestic economy is very strong. Inflation, unemployment, consumer confidence, wage growth, accommodative interest rates, and on and on, but a moment of being able to earn more annual interest on a 2 year treasury note than a 10 year treasury note last week sent stock prices on a rollercoaster ride even seasoned stock investors didn’t appreciate. See this week’s Weekly Market Review for additional details.
Additionally, while a consistent predictor of an eventual recession, the inverted yield curve is a leading indicator of potential things to come. Generally leading by as much as 18 to 24 months. Most of us acknowledge an eventual recession is inevitable When and how dramatic are better questions than if? Many have been calling for this eventual recession since 2013… Eventually, they will be right, but investors on the sidelines since 2013 have missed an incredible and profitable time to be invested in the shares of well-run publicly traded companies.
As always, we hope you find the WMR both informative and interesting.
Have a nice week.
Trevor N. Coe, CFP®