Implications of an Inverted Yield Curve - Update

A year ago we explored the behavior of major US asset classes following yield curve inversions. Looking at the three preceding cycles, we found that although the near-term aftermath of a negative yield curve did not imply material declines in the price of risk assets, risk-adjusted performance favored assets on the safer end of the risk spectrum. In this piece, we look at the performance of the major US asset classes since the yield curve inverted in late March 2019.

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