These stocks are dependable winners after the yield curve inverts


Olde Hornet

Well-Known Member
These stocks are dependable winners after the yield curve inverts


The bond market’s main yield curve inverted on Wednesday, triggering worries of an eventual recession. But investors can still win, even if the clock is ticking on this bull run.

The yield on the benchmark 10-year Treasury note was at 1.623% on Wednesday, below the 2-year yield at 1.634%. This means that investors will now receive higher returns on a short-term bond than a long-term Treasury note, a trend that signals investors are worried and looking for a long-term safe haven for their money.

CNBC used Kensho, a hedge fund analytics tool, to determine which sectors of stocks perform the best after a yield curve inversion. This type of inversion has happened three times since 1980 and data showed that only two sectors yield positive returns six months after an inversion 100% of the time, and only one sector beats the broader market.
 
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