Almost everybody is familiar with the business cycle. Our economy expands and contracts. Before many contractions, the yield curve inverts, which basically means investors are accepting lower investment returns over the long term, due to economic concerns over the short term. This usually signals a slowing economy.
This latest yield curve inversion has caught everyone’s attention, but did anybody see it coming? The Wall Street Journal reached out to world leading Economists, and asked them where they saw interest rates in the future. Not a single top mind on Wall Street got it right. The yield curve inverted, to the surprise of many.
“Past performance is not indicative of future returns,” and the fact is nobody can say otherwise—legally, ethically, or philosophically.
At Align Wealth Strategies, we accept that the future is unknowable. Common sense tells us that we can limit investment risk by diversifying gains and losses across an array of different types of assets. Common sense investing is what we do best. If you would like to learn more about how your investment portfolio is positioned, feel free to reach out to one of our advisors.
~ Erik Laymon, MBA
Portfolio Analyst & Planning Services Manager
Disclosure: Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved