What You Can Learn from the Yield Curve

Patrick R. McDowell, CFP®, AIF® was quoted in a US News & World Report article by Jeff Brown discussing what you can learn from the yield curve.

SHORT-TERM interest rates have been inching up faster than long-term rates, a condition called a "flattening yield curve" that for decades has predicted recessions and put investors into a quandary.

What should investors do? The options range from nothing to changing holdings to employing strategies to either grow or protect the portfolio, to putting money on the sidelines for safe keeping.

"The yield curve is one of the single most effective recession indicators available to us as investors, it is almost never wrong," says Patrick R. McDowell, investment analyst at Arbor Wealth Management in Miramar Beach, Florida. "We believe the yield curve will invert in the next 12 months," he says…