Now is the time to PANIC
- Usually you get higher interest for a long term loan than a short term loan. When the short term loan has a higher interest rate than the long term loan, that is called an inversion. It suggests that money will become scarce/tight in the short term, and historically is a reliable indicator of an upcoming recession.Dec 312
- Agilent Technologies / R&Dm/zWhat's reported is the 3-5 year split and this article is to make suckers like you panic and sell all your stock the next day. The major indicator for yield curve inversion is the 2-10 split, followed by a downturn a couple months to a year after.
- LinkedIn Al_BundyIf you invest in shitty stocks or need the liquid in the next decade, selling might make sense. Drive the prices down for me please!
- I think 1Y-10Y split is the indicator that matters. 3-5 split does not guarantee anything.
- Apple crookYeah, another one was last year. Every once I a while some sucker "analyst" posts this shit hoping to get it right.
- Workday eP8fFrThe calc looks something like this... puts are $500 each Jan 2020 for 30% out of money. Likely decline 60% from highs, if captured. Sell price equivalent to puts 30% in money today expiring Jan 2019 (sell 2020 this time next year).
There's a little more to it including probability of not capturing and rolling out, but that's the essence.5d0