Inverted Bond Yield Curve & Why the US Dollar is Rising

October 6, 2022

Toronto’s best mortgage brokers, Cannect Home Financing, explain what an inverted bond yield curve is and why the US dollar is rising as we head into a recession. Yet, it looks like we are seeing some optimism in the U.S. markets. Marcus Tzaferis and Justin Turner take the listeners through a few positive economic indicators.
According to an article on Barron’s, we may be seeing a peak in bond yields and the US dollar index. If this is the case, it could be a precursor to a rally for US markets. Why is this? Listen to the episode to find out! This cautious optimism entirely depends on inflation and the direction central bankers take, but to show how quickly times have changed, the United Nations advised central banks around the world to pause rate hikes.
This isn’t unprecedented, but it is very rare. People are already feeling the impact of these rate hikes and for some countries, this means hardship, but for developing nations, it means people can’t put food on the table. Your favourite brokers also answer some questions regarding home equity loans during these times of high interest rates.
If you are looking to access equity, you need to carefully weigh the market uncertainty and the premiums that come with it against the possibility of equity erosion if you wait too long. Borrowing to invest also needs to be done carefully right now. Given how high rates are right now, you need to be very confident in the value and growth potential of the investment in order to justify the cost of borrowing. Some equities are at huge discounts right now, but these opportunities still need to be evaluated carefully.

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