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October 4, 2023 | Yield Curve Steepening Signals More Pain for Stocks, Reeal Estate and Economy

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

Bond analyst Alf Pecatiello warns that over the last 3 months, US bond markets have been in an aggressive and prolonged period of bear steepening of the yield curve. History shows if left unchecked, this steepening is likely to cause serious damage to equity markets and the economy. Here is a direct video link. 

As shown below, since 1985 (courtesy of Game of Trades), a re-steepening yield curve has historically hammered stocks (S&P 500 in orange), especially when starting from above-average valuation periods, like in 2022, 2007 and 2000.

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October 4th, 2023

Posted In: Juggling Dynamite

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