Chart of the Week: S&P 500 vs. U.S. Yield Curve

The financial media is buzzing over the flattening U.S. yield curve. So what happens to the stock market in flattening yield-curve periods? Answer: Cyclical bottoms, cyclical tops, melt-ups, and crashes – i.e., just about everything.

Flattening yield curves haven’t predicted stock market performance. The inverted curves of 1989-1990, 1998-2000, and 2006-2007, however, warned that short-term interest rates were too high.

 

By | 2017-11-08T13:26:37+00:00 November 8th, 2017|Categories: Market Strategy Report|0 Comments

About the Author:

Mark Ungewitter is a Senior Vice President & Investment Officer at Charter Trust Company. He was formerly Director of Portfolio Management at Investors Bank and Trust in Boston, Massachusetts. He holds an M.S. from Bentley University and a B.S. from Massachusetts College of Liberal Arts. He is a member of the American Association of Professional Technical Analysts.

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