The Kevlar Economy. The United States, for the time being, is a Kevlar economy. It’s practically bulletproof.
Yield Curve Inversion. The yield spread between the 2-year and 10-year Treasury Note has narrowed to 25 basis points, its smallest spread since 2007. This has many investors worried the narrowing spread will lead to an inversion of the yield curve (when short-term rates exceed long-term rates) – which throughout history has often occurred prior to a recession…we do not believe the current narrowing yield spread signals looming recession.