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Smart Thought Of The Week: Inversion
By The Smart Investor  •  April 3, 2022
There is a lot of talk, or should that be a lot of noise, at the moment of recession. It has got some people very worried. I guess some folks have good reason to be concerned. A recession could mean that the economic rebound, which many of us had expected to happen after the shock of a pandemic, could be short-lived. If we think back to 2020, experts at the time were debating over the shape of post-pandemic recover. They included a V-shaped, U-shaped, W-shaped, and L-shaped rebound. Some had even suggested a Square-Root shaped recovery. So, why are some experts forecasting recession now. Well, they point to the decline in bond yields for 10-year Treasuries compared to the yield on two-year notes. Generally, we would expect interest rates on those longer-term loans to be higher than 2-year Treasuries. It stands to reason why they should be higher. If we are lending money...
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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