Why investors near retirement should fear the big yield curve inversion
December 05, 2018 at 09:37 AM EST
The yield curve inverted on Tuesday between short-term Treasury bonds and the five-year Treasury. It wasn't the "big" inversion — that is when the 10-year yield drops below the two-year. But the situation is alarming, and investors need to understand why. The economy does not respond well to inversions, starting with banks and rippling through all businesses. In a word: recession.