Inverted yield curve

The news of the day in the markets was the inverted yield curve. For a brief moment today, the yield on a two-year treasury note was higher than the 10 year note. This means that you could invest in a 2 year note and earn a higher interest rate than a 10 year note. This of course is inverted as you should earn a higher return for locking up your cash for a longer period like 10 years versus a 2 year period.

I won’t pretend like I know exactly what’s going on with the inverted yield curve and the markets so I set aside some time today to do some reading and talk to people much smarter than I am. My not helpful conclusion from about 30 minutes of reading Twitter and articles is that this could be a sign of a recession incoming or it could be a fake and mean nothing.

I really enjoy learning about the market and it fascinates me, but I’ve come to realize that making actionable decisions based on things like a brief inverted yield curve is not something I’m qualified to do. Instead, I’m going to focus on what I know and that’s investing in great companies that have potential to grow significantly in the next 10 years.