Keep informed of our current thinking by subscribing to our blog...

FALSE START! Inverted Yield Curve has not Predicted a Recession

For the past few months there have been swarms of PhDs, economists, and strategists buzzing to a hypersensitive media about the dire straits portended from the inverted yield curve. It only seems appropriate we share more of our thoughts and observations on the matter. As a primer, a bond is a loan that is to be repaid at prespecified date when the bond/loan matures. The borrower/bond issuer pays interest to the lender/bond holder as compensation. For the purposes of this general essay, the terms interest rate and yield are used interchangeably, and inflation is assumed to remain subdued. What is the yield curve? [endif]--The yield curve is a chart of the interest rates that are paid to borr

Recent Posts
Archive

(804) 288-6080

8001 Franklin Farms Drive, Suite 208

Richmond, VA 23229

The opinions expressed herein are those of Redmond Asset Management, LLC (RAM) and are subject to change without notice. Past performance is not a guarantee or indicator of future results. Consider the investment objectives, risks and expenses before investing. You should not consider the information provided on this website as a recommendation to buy or sell any particular security and should not be considered as investment advice of any kind. RAM was established in 2005 and is registered under the Investment Advisors Act of 1940. Additional information about RAM can be found in our Form ADV.  

© 2018 by Redmond Asset Management, LLC