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April 2, 2020 | Yield Curve Got It Right

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

My colleague Bob Hoye saw a yield curve inversion that occurred in July as reason to prepare his subscribers for the stock market crash that has ensued. Every inversion since 1857 foretold a recession, suggesting that even without the pandemic, shares were headed for trouble. Still more concerning, he notes, is that the curve inverted twice this time, a rare and especially ominous event seen only in 1873, 1929 and 2007. These were all memorable years in the annals of economic ruin. Will we be fortunate enough to escape with something less this time? The next few weeks may hold the answer, but prayer couldn’t hurt.

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April 2nd, 2020

Posted In: Rick's Picks

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