Users Online Now:
2,306
(
Who's On?
)
Visitors Today:
589,520
Pageviews Today:
991,380
Threads Today:
332
Posts Today:
6,099
11:30 AM
Directory
Adv. Search
Topics
Forum
Back to Forum
Back to Thread
REPLY TO THREAD
Subject
Recession wont come until at least 2021, Bank of America predicts
User Name
Font color:
Default
Dark Red
Red
Orange
Brown
Yellow
Green
Olive
Cyan
Blue
Dark Blue
Indigo
Violet
Black
Font:
Default
Verdana
Tahoma
Ms Sans Serif
In accordance with industry accepted best practices we ask that users limit their copy / paste of copyrighted material to the relevant portions of the article you wish to discuss and no more than 50% of the source material, provide a link back to the original article and provide your original comments / criticism in your post with the article.
[quote:Anonymous Coward 76553671:MV8zODI3ODgwXzhGQzQwOERC] https://www.cnbc.com/2018/05/08/recession-wont-come-until-at-least-2021-bank-of-america-predicts.html Bank of America's investment arm has offered some soothing words to investors fretting about an imminent meltdown in global equities and a resulting slowdown. The investment community have been busy watching the recent trend in bond yields this year, with many commentators predicting that the current economic cycle could be reaching a peak. The "flattening of the yield curve" where short-term interest rates get closer to the long-term rates has sparked some fears that a recession is around the corner. In a normal functioning economy, short-term lending has fewer risks the underlying thought is that you can more easily predict what's happening tomorrow rather next month. Prior to previous recessions, the gap between these two rates has narrowed, thus every time the two get closer some investors prepare for the worst. But, according to Bank of America Merrill Lynch, we are not there yet. "The yield curve may be flattening but our rates strategists do not expect it to invert in 2018," the research note Tuesday said. An "inversion" of the yield curve takes place when lending in the short-term is perceived as more risky than lending in the long term. This means that investors believe the economy is doing much worse in the present than it will do in the future, i.e. we are in the middle of an economic slowdown. [/quote]
Original Message
[
link to www.cnbc.com (secure)
]
Bank of America's investment arm has offered some soothing words to investors fretting about an imminent meltdown in global equities and a resulting slowdown.
The investment community have been busy watching the recent trend in bond yields this year, with many commentators predicting that the current economic cycle could be reaching a peak. The "flattening of the yield curve" where short-term interest rates get closer to the long-term rates has sparked some fears that a recession is around the corner. In a normal functioning economy, short-term lending has fewer risks the underlying thought is that you can more easily predict what's happening tomorrow rather next month.
Prior to previous recessions, the gap between these two rates has narrowed, thus every time the two get closer some investors prepare for the worst. But, according to Bank of America Merrill Lynch, we are not there yet.
"The yield curve may be flattening but our rates strategists do not expect it to invert in 2018," the research note Tuesday said.
An "inversion" of the yield curve takes place when lending in the short-term is perceived as more risky than lending in the long term. This means that investors believe the economy is doing much worse in the present than it will do in the future, i.e. we are in the middle of an economic slowdown.
Pictures (click to insert)
General
Politics
Bananas
People
Potentially Offensive
Emotions
Big Round Smilies
Aliens and Space
Friendship & Love
Textual
Doom
Misc Small Smilies
Religion
Love
Random
View All Categories
|
Next Page >>