As my long-term clients have known since way back in 1997 (when I first revealed my super-simple market timing system), I am a staunch believer in the power of the yield curve. The version I watch is very different than the one that has been getting a lot of news lately. That’s because I focus on commercial rates as opposed to Treasury rates.
Nevertheless, my version is dangerously close to inverting. And that would be a very bad thing.
One event that could push my version of the yield curve into an inversion is if the Fed raises rates this week.
Apparently, I am not alone in believing that the Fed should hold off. And no, I am not talking about the president.
The fact that Gundlach is saying the same as me is one thing. The fact that Druck is saying the same thing just amplifies it.