MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 679.70

+0.7%

Nov 26 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Haim R. Branisteanu who wrote (23935)	8/26/1999 11:10:00 PM
From: Bob Markley	Read Replies (1) of 99985

<< That is why an inverted yield curve indicates recession as the anticipated inflation is going down. A flat yield curve is "soft landing" or little growth.>> Haim, Confused, ... is not inverted interest rates caused by short term greater then long term, such as the spike in short term rates in '78 that caused the huge gold rally? Would this not show a state of illiquidity in the economy where short term money is dear & long term avaliable? Where the curve would "bulge" high in the short, rather then a normal pattern of LT money at higher rates then ST? Agree that a negative slope on the yield curve could show a dropping rate of preceived inflation, but then could this not just be in response to the lag of monetary policy & the influx of cash into the economy? Could not the low GDP #'s just show that the economy is not overheating and the gentle deflation that has been propelling the bull market is still intact? ie. that it could go alot higher?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next