• 12-Jun-2024

Long-Term Rates To Drop Below 2%? Cathie Wood Says 'Would Love The Fed To Pay Attention' To This Chart

Grand News Network | November 6, 2023

Ark Investment Management‘s Cathie Wood has weighed in on bond yields, which have now become one of the biggest concerns of the market.

Monetary Policy Restrictive: On the recent episode of the “In The Know With Cathie Wood” podcast aired on Saturday, Wood shared a chart of the differential between the 10-year and two-year Treasury notes, which showed a negative reading or a yield curve inversion. 

A negative reading suggests the shorter-term interest rates are higher than the long-term rates, which wasn’t normal, she said, adding that it has been more than a year since the yield curve has remained inverted.

When the yield curve inverts, it signals that the economy is either in a recession or not far from a recession, the fund manager said. 

“We would say we are in a rolling recession for the past year-and-a-half,” she added. Wood sees it as a harbinger of slower economic growth and lower inflation than most people believe.

There is a 100-basis-point or one percentage-point inversion now, similar to what was seen in the 1980s when the long-term bond ...

Full story available on Benzinga.com

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