I recently chanced across an article by Turtle Investor where he described what he would do with his robo investments if the market crashed (Spoilers Alert: He would sell bonds and buy equities). It got me thinking, we have emergency plans for fires, earthquakes, aeroplane emergency landing, why not one for our investments? Where is the colourful brochure that tells investors what to do in the event of a 20% or 50% crash in share prices?
The persistent flattening of the yield curve is starting to look quite worrying. An inversion of the 2s10s US treasury yield curve has preceded every single one of the past 5 recessions, and with the fed on its crusade to raise interest rates, we may be getting to that point sooner than we think (Macro Tourist has a great post here with even more curves).