In This Economy?

Biggest Yield Curve Inversion In 30 Years

| Jun 5, 2023
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    In This Economy?

    Biggest Yield Curve Inversion In 30 Years

    Jun 5, 2023
    Yield curve inversions include short-term interest rates rising higher than long-term interest rates, and they only occur about once every ten years. The US yield curve is currently the most inverted it's been in more than 30 years, and it's been that way for more than twelve months of trading. Frank Kaberna gives context on what this type of environment has historically meant for the stock and bond markets, and he gives options for what the individual investor can do before the yield curve normalizes.

    Australian dollar and Canadian dollar have diverged significantly in recent years, which rarely happens given their high degree of historical price correlation. Frank talks about the advantages of trading AUD/CAD and how prices for the major non-USD forex pair could either bounce back into their historical range or create a new normal between the commodity currencies.

    Bitcoin has moved lower by more than 6% in today's trade and is threatening to decline past recent lows of $25,000. Frank shows the historical distribution of daily changes in the cryptocurrency and finds today's move to be around two standard deviations.

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