Global Financial Crisis, QE1, QE2, What’s next? Part 2

This is a continuation to my earlier post, Global Financial Crisis, QE1, QE2, Inflation, Higher interest rates. What’s next? And I mentioned on a rare indicator ‘Inverted Yield curve’ in Market trends – which direction, North or South?

As you’ll probably know, interest rates had started to rise in G3, much higher in Brazil, India and China (in Emerging markets) and more prominent in Asia. As a result, the tendency for Inverted Yield curve could surface.

Most yield curves are predominantly ‘normal yield curve’. As interest rate rise, the spread between short-term and long term narrows, the yield begins to flatten. And as interest rate rises much higher, the yield curve will become inverted – known as the inverted yield curve.

As for the definition of inverted yield curves, you may Google or visit The Impact of an Inverted Yield Curve.

I like to sign off here but I’ll be right back once I’ve identified the countries with Inverted Yield curves. You may then decide if you need to reposition your investment portfolio.

I would strongly advise that you check and discuss with your financial consultant what his strategy will be in respond to this financial climate on your investments!

I do not have a crystal ball. Neither has anyone. Speculating the future (or giving tips) at this point is rubbish. We just have to take one step at a time monitoring the technicals, fundamentals and the cattle’s mentality in reaction to events.

Bookmark this site - For timely and constant update of the financial markets. After which, pro-active (or reactive) management in a timely and efficient manner should assist you to limit your losses and ride the waves when the market reverses Northwards!

In relation (my earlier article) to the Art of War teachings, the climate is not conducive for War. My strategy as the General will be to pullback and delay the attack as long as possible until the climate is more favorable to my advantage for the next Attack.

I’ll be right back. Watch this blog closely! The continuation Inverted Yield curves – a rare but noteworthy indicator is ready, click to continue.