You’ve heard the news, right? On March 22nd, 2019 for the 1st time since 2007, the US Treasury yield curve has inverted. As in, short term yields are now higher than long term yields vs the normal curve which plots out yields that get progressively higher.
So, what? Well, this change in the yield curve is one of many signs that warn us of a pending recession. The problem with the indicator is that it is terrible at predicting when that recession will occur. And at times it is completely wrong; no recession happens. (Ask for RBC Wealth Management Report – Global Insight Weekly March 28, 2019 to read more).
What should you do about it? Stick to your plan!
- Have or Create a wealth strategy.
- Spend your money consciously.
- Keep cash on hand for your major expenditures within the next 18 months.
- Develop an investment strategy to fit your needs and your risk tolerance.
- Diversify globally.
- Manage investment costs (ie MER, Trading costs, Turnover costs, and Taxes).
- Stay disciplined throughout market ups and downs.
As a client, you count on our professional judgment to advise you on actions (or inaction, for that matter) necessary to meet your life goals. That is what we will continue to do... bring perspective to world and economic events while building and strategizing financial plans that optimize how you spend, save, and share your wealth.
And, here’s the deal, if you are not our clients and you don’t have a plan, don’t worry, we are accepting new clients. Simply fill in the application on our website to apply for your personalized complimentary prosperity discovery session.