3,882
edits
Talk:Economic Outlook: Difference between revisions
→Strongest Correlation Yield Curve Invasion
| Line 33: | Line 33: | ||
When market expect economy weakness, they are known to flee to safe assest, especially the 10 year bond. If I am expecting significant rate cuts in the future due to this, owning a longer term bond can be very valuable, whith a higher yield and capital gains too with lower risks. | When market expect economy weakness, they are known to flee to safe assest, especially the 10 year bond. If I am expecting significant rate cuts in the future due to this, owning a longer term bond can be very valuable, whith a higher yield and capital gains too with lower risks. | ||
Yes, they could be expecting inflation to come down signicantly even to allow the FED to cut rates, without a recession. But historically that is not a very likely outcome. | Yes, they could be expecting inflation to come down signicantly even to allow the FED to cut rates, without a recession. But historically that is not a very likely outcome. | ||
Also I dont think the market is pricing rate cuts due to the FED projections, the markets at the moment are pricing very different outcomes compare to the FED projections, especially pricing rate cuts already in 2023. Unfortunately, the FED credibility is still not good. | |||
I will probably rewrite the whole part so it is best understood. --[[User:MagaNH6|MagaNH6]] ([[User talk:MagaNH6|talk]]) 21:26, 24 January 2023 (UTC) | I will probably rewrite the whole part so it is best understood. --[[User:MagaNH6|MagaNH6]] ([[User talk:MagaNH6|talk]]) 21:26, 24 January 2023 (UTC) | ||