In our industry but really in every industry, technical language can be intimidating or a put-off. As Einstein once said, “Anyone can make something sound complicated. It takes true genius to make it sound simple”.

I’ll give this a shot: Lets say you want to invest some money and you decide to buy bonds, specifically a 10y Treasury vs a 2y Treasury. The expectation is if you invest in a longer term, your yield or return on investment would be greater. Normally that is true but not now.

The 2y Treasury is outperforming the 10y meaning the “Yield Curve” is reversed or “Inverted”. This historically is a strong indicator of a recession a weakness of the economy.

Well, maybe I get an A for effort… Have a great week.