By Karim Rahemtulla The Fed has pitched us a tough one…
The news is abuzz with talk of the inverted yield curve. Many investors are wondering: What is it? What does it mean for me? And could it be misleading this time?
Understanding the Yield Curve
First, let’s talk about the yield curve. When the yield curve is behaving normally, you’ll earn more on long-term government bonds than on short-term ones.
So if you were to buy a 10-year government bond, it would pay you a higher rate of interest than a bond that matured in two years.
This makes sense. After all, you should get paid more …read more
