The S&P 500 Has Room to Grow (zt)

Recently investors witnessed an event that hasn't been seen in over a decade. Many portend that when this phenomenon occurs, a recession may be looming. This event is an inverted Treasury yield curve. An inverted yield curve is a rare occurrence when short-term interest rates rise above long-term interest rates.

 

The chart above depicts how the S&P 500 Index performed after two past Treasury-yield reversals. The first noted reversal was in 1998, the second in 2005. Per Bloomberg data, in both cases the S&P 500 continued to move higher for nearly two years before hitting its peak, capturing gains of 38% after the 1998 yield curve inversion and 24% post 2005's yield curve inversion.

Of course, past performance is not indicative of future results. But this chart may predict that the S&P 500 has room to grow.

 

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• 长期肯定的！ -Tianyazi- ♂ (0 bytes) () 12/15/2018 postreply 19:08:32