The Turn in the Yield Curve; When Women Bring Home a Bigger Slice of the Bacon

  • A key market barometer of the risk of future recessions is sounding its loudest warning since April 2007, months before the start of the last financial crisis
  • Shorter-term bond yields have climbed above longer-term ones, a phenomenon known as an inverted yield curve. The yield curve has typically inverted before recessions. Yet economic growth remains steady and the labour market strong
  • Investors disagree about whether short-term yields exceeding those in the longer-term has a mechanical effect on the economy

  • The growing clout of women as drivers of the U.S. economy will radically alter the business and investing landscape in years to come
  • It is now more common for a woman to be more educated than her husband than vice versa. As of 2017, 31% of women earned as much or more than their husbands, as compared to 25% in 2000 and just 13% in 1980
  • Women’s attitudes toward money also differ from men. 14% of women said they would use the money to buy more things versus 19% of men in a survey conducted by Bank of America
  • Such conservatism extends toward women’s investing behaviour. This may hurt funds offering investment strategies to investors that are riskier or more active and aid funds with passive strategies—a clear industry trend recently