We are so fucked
We are so fucked
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what does this chart mean for anyone under 50 years old?
screw that.
explain it like you would to a 6 year old
wtf are you on about gramps?
when/if it goes below 0, we are almost guaranteed to enter a multi year recession. maybe even a depression because already low interest rates and high inflation can’t be used to stimulate growth and getting us out of the recession
I'm no expert but look at the chart title
10 year minus 2 year
Line could go below zero, what do you think that means? You get more yield from 2 year debt than 10 year debt, that defies general logic where you should get more yield from longer time frames.
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Heres your boomer chart deep dive
tl;dr the yield curve has predicted every single crash since 1970 and it aint looking good
Scientology nigger.
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Psychological Manipulationis totally legal.
posted that in the wrong thread sorry, ignore it.
yeah, but line always goes back up... so we're just screwed for a little while?... i dont get it
When you lend your money out for 10 years you should *normally* get higher interest than when you lend it for 2 years. That is because within 10 years that money would *normally* find better use elsewhere (in a functioning economy) than in only 2 years. So in some way the 10-vs-2 year treasury yield incorporates long-term expectations of growth. As you see in the chart, the difference is shrinking. Investors are not expecting growth.
Line always goes back up but what damage was done in the meantime, and if this inversion precedes said damage then you can preserve capital by taking action.
They usually solve it by lowering rates, we are already at rock bottom with massive inflation. This is going to be a wild ride
We needed to raise rates while the economy was strong, we tried but rona killed that and it hit 0%
A lot of people are going to lose their jobs, their homes, as well as their investments that they will have to liquidate near the bottom just to make ends meet.
Recessions and depressions aren’t the end of the world by any means. But millions of people who are living paycheck to paycheck or are overleveraged will get financially assfucked
Best case scenario: crash, recession, recovery. Money to be made if timed right.
Worst case scenario: stagflation which could last for 10+ years. No where to hide. Everyone gets fucked.
Which one it will be depends entirely on how fast or slow central banks will raise rates. Most people I have talked to now believe that stagflation is the most likely outcome, and that is spooky as shit unless you’re worth 8+ figures and can weather the long storm
how soon until crash and recession after 2s10s actually inverts?
Good thing that the people making the decision are all worth 8+ figures
Good thing everyone on this board is worth 8+ figures
uhuh i dont feel so gud bros
whats that ticker?
>we are already at rock bottom with massive inflation, we tried but rona killed that and it hit 0%
not true, you can go below zero
You can't live in la-la land forever where you can freely make money out of literal shitcoins and nft scams. Eventually, shit will hit the fan.
It's gonna be a bleak 2-3 year timespan for stocks, bonds, probably crypto.
Maybe, MAYBE, there will be a one last "hoorah" before it all comes crashing down.
The correct move now is probably either stay low risk, or in case of crypto, accumulate.
Accumulate ICP. Don't say I didn't warn you
can take 1 or 2 year
Actually it reverted around 2018 and no recession happened (except covid count it if you want)