Lower Yields and Equity Prices Lie Ahead


The inversion of the 3-month to 10-year Treasury curve has deepened significantly and when it is this inverted recession
almost always follows within the next year. That is our expectation, and once unemployment begins to rise the Fed will
likely begin to reverse the rate hikes put in place this year, supporting bond returns while equities would likely move
lower as corporate earnings levels would likely be well below current expectations.