In our latest B.I.G Tips report, we detail and summarize sector performance following periods where the yield curve first inverts after two-years or more of not being inverted. One of the periods we looked at was the most recent period prior to last week, which was back in 2006. The 2006 inversion was followed by mixed market returns. One month later, the S&P 500 was essentially flat with Telecom Services and Transports leading the way higher as Energy and Utilities both declined. Three and six months later, the S&P 500 saw similarly mixed returns, but one year later, the S&P 500 was up over 11% and every sector was up at least 4.5%. The party ended shortly thereafter, however, as the Global Financial Crisis took hold in late 2007 through early 2009.
To gain access to the full report which contains more of the same analysis for each of the periods where we saw similar inversions after at least two years without an inversion, please start a two-week free trial to our Bespoke Premium package now. Here’s a breakdown of the products you’ll receive.