, Columnist
This Is the Inversion Stock Investors Should Sweat
The difference between the earnings yield on stocks and the yield on cash is a good bear-market indicator.
Stocks suffer when cash is king.
Photographer: SeongJoon Cho/Bloomberg
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U.S. stock investors who are anxiously watching the yield curve are worried about the wrong inversion.
Investors have been howling about interest rates since Monday, when part of the U.S. Treasury yield curve inverted for the first time since 2007. The five-year Treasury yield dipped below that of the three year by a razor-thin 0.01 percentage points. Yawn.