Inversion and Investment Statistics: the more you know

August 26, 2019 | Jeremy Goldfarb


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Continuing to put context into the everyday headline that is the inverted yield curve. I had the opportunity to hear from a portfolio strategist at Manulife Investments last week, and one of the topics (no surprise) was the inverted yield curve.

 

Some interesting statistics were provided during the discussion, so I turn your attention to the attached PDF . Most notably on this table is the return figures pre and post, and I would like to turn your attention to the last 3 columns (bottom rows). One average: (S&P500)

 

1- inversion to peak return is 18%

2- 6 month post inversion return 6%

3- 12 month post inversion return 7%

4- 24 month post inversion return 3%

 

More to follow.