STPP - Are Inverted Yield Curves Signaling A Recession Or A Deflationary Boom?

By Catherine Wood, ARK Invest CEO

Now that yield curves are inverting, investors seem to be bracing for bad news. In the last 100 years, inverted yield curves have foreshadowed recessions within roughly a year, as indicated by the below data points.

Based on the 50 Years Ended 1929, We Believe the Yield Curve is Signaling a Deflationary Boom

For the first time in 100 years, we believe that innovation is picking up at a pace not seen since the turn of the nineteenth century, causing a confluence of abnormal economic signals that are stirring

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