Wednesday, August 02, 2006

The 3-mo./10-yr. inversion has increased. Commercial paper rates are also inverted. Caution, but not panic, is advised.

4 comments:

Anonymous said...

Deb,

If you look at the Fed's weekly data, so far we have two consecutive weeks of 3mo/10yr inversions. Another week or two and we'll end up with a monthly average inversion. It's beginning to look like time to leave equities for a bit. Getting very close anyway . . but I'm not panicking :-)

Brian

Anonymous said...

Should i hold onto my REITs? They've been doing pretty good as of late...jrs & nrf especially.

Deborah said...

Dear Brian, While the curve is certainly inverted, quality spreads are narrow and suggest that interest rates are too low to cause a serious recession.

Dear Anonymous, Stop losses are good. What is a jr or a nrf?

Best to you both,
Deb

Anonymous said...

sorry..jrs and nrf are the ticker symbols for the reits i own.