The Inverted Yield Curve, Again
The best recession predictor is flashing red. The yield curve is flattening and looking to invert, and investors aren’t paying as close of attention to it as they used to. Should they?
The best recession predictor is flashing red. The yield curve is flattening and looking to invert, and investors aren’t paying as close of attention to it as they used to. Should they?
Ask anyone on the street how you make it big in finance, and they’ll likely say it takes a lot of math and a lot of luck. But that’s not really true. On Wall Street, there are two skills that will make you richer faster than being a math whiz—and there are three very good reasons why.
Stocks have spent months falling in fear of higher interest rates, and the future looks gloomier with a war and higher commodity prices. So why did the market soar when the Federal Reserve hiked interest rates by 25 basis points? To understand this, we need to go back to one of the basic building blocks of finance: time.
Recently a couple of Wall Street banks sent notes to clients about how to invest for a nuclear war and the end of the world. Sound crazy? These are crazy times…but what will happen to finance in a post-apocalyptic nightmare?
To be successful in the markets, you need to care more about making a profit, and Russian investors are now learning that the complexities of financial infrastructure and financial theory matter much more than “line goes up”.
Curious what it means to be a CFA charterholder? Zolio digs deep in the cheapest—and hardest—in-road to a career on Wall Street