Episode 40: US Treasury yield curve inversion hysteria

Apr 10, 2019 | Podcast Episodes

Stock Market

There’s been a lot of talk about the US Treasury yield curve as of late.The yield curve is a measure of what short term interest rates are currently offering in the states for US treasury bonds, versus long term treasury bonds.

Typically these short-term interest rates are lower than long-term rates, because there is a higher risk of something going wrong over a longer period of time. Historically, the US has not had a recession without the Treasury yield curve inverting approximately 18 months beforehand.

But, is the yield curve truly inverted and is this an indicator of an impending recession? Listen in for our discussion on why the inversion may not be the doom and gloom indicator commentators are predicting.

This Week’s Investor Exchange Round Table Covered:

  • Louis answers a common question surrounding purchasing property. When accumulating wealth, is it a better idea to purchase a home to live in, or to invest in a rental property? Listen in now for his insights (15:30)
  • As population size continues to grow will the profile of a property change in the apartment market? Listen in for how the established market, primary market, and location impact price.(23:30)
  • Brett discusses The List, released by the Australian Financial Review and The Australian, covering the top 250 wealthiest Australians. Find out what industries the major players are in. (30:25)

You Cannot Be Serious:

The Star Entertainment group is on a debt recovery mission. After 5 days of baccarat, a high roller from Singapore racked up $43 million in debt. Leaving a blank cheque as collateral, the high roller then told his bank not to honor the check because he believed his dealer made a series of mistakes.

Two men in America were arrested after having a few drinks and testing out a bullet-proof vest, so both men took turns trying on the vest and shooting each other. Luckily, both men were fine.

Listener Questions:

Write in to get your investment and wealth management questions answered by Joel, Brett and Louis.

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The Investor Exchange Theme Music: “Happy Happy Game Show” by Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0.

 

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The Investor Exchange

The Investor Exchange is weekly podcast where the expert panel share banter, tips and insights on how to grow and manage wealth.

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