On May 16, 2024 it was noted that there were two key indications for a repeat of the year 2000. The 10Yr-2Yr charts shown below provide structural similarities as of November 7, 2024. The latest 10Yr-2Yr yield curve inversion started on July 6, 2022. Since September 6, 2024, it has remained above zero resulting in an inversion that lasted 26 months. On September 18, 2024 the Federal Reserve started their process of cutting the Fed Funds Rate by 1/2 percent. In comparison to 2000, the Fed started cutting rates after major Dow tech stocks collapsed. This time the Fed appears to be repeating their rate cutting process from 2007, as stocks are moving higher. A market decline and a recession in 2025 is expected.
Note that this information is for educational purposes only and not a recommendation.
