A yield-curve inversion has preceded every US recession since 1950.
But not every instance of inversion was followed by a recession.
In fact, the popular signal — which flashes when the two-year Treasury yield tops the 10-year — has been wrong on at least two occasions since 1950.
Some investors think the current yield curve inversion could be yet another false-positive. If the Federal Reserve keeps easing monetary conditions and a trade resolution is reached, it could un-invert.
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The BTIG strategist Julian Emanuel is reiterating his call that the bond bull market has become a bubble on the verge of bursting, and he's predicting a decline in prices that will reshape leadership in the stock market.
He said he's identified underappreciated and attractive stocks in the energy and financial sectors that should climb as the trend continues.
Emanuel said bond prices were dipping and yields were rising again as investors have let go of some of their concerns about a recession —...
"If this market wants to toss out high-quality merchandise, let their trash be your treasure," the "Mad Money" host says.