This Recession Signal Offers Investors a Glimmer of Hope

This is where the good news for investors comes into play. [Jeff Clark's Market Minute]( Jeff’s Note: If you’re still relying on buy-and-hold strategies… be careful. In the coming weeks, stocks are facing [a massive $4 trillion “snap.”]( For many, this swift and inevitable event will wreak havoc in their portfolios. But if you know what I do, there could be 40 years’ worth of gains up for grabs. Each time one of these stocks “snaps,” you could potentially double your money – sometimes more – in as quickly as a few hours. To see how you could stop your portfolio from bleeding more red, [click right here]( to join me on November 2, at 8 p.m. ET. And below, read on for Clint Brewer’s latest market update… --------------------------------------------------------------- This Recession Signal Offers Investors a Glimmer of Hope By Clint Brewer, analyst, Market Minute While the stock market has made a lot of headlines this year, the bond market has made downright historic and unprecedented price moves. When bond yields rise, their prices fall. The current jump in the 10-year Treasury yield has sent its price plunging down over 19% this year. That ranks as the worst year ever on record. However, it’s not just the longer maturities. In fact, short-term bond prices have been falling as well, meaning their yields are skyrocketing. As the Federal Reserve jacks up interest rates on short-term bonds at an even quicker pace than long-term bonds, this has caused something called an inverted yield curve… Recommended Link [They Make Lots of Money. But You’ve Been Locked Out (Until Now)…]( [image]( One small group of companies is making so much money… So fast… That they’re refusing to take new investors. But one small-town millionaire has found a way to [collect thousands of dollars in income]( from North America’s fastest-growing firms… even though… they do not trade on the stock market. It helped him get rich again after he lost his millions the first time. And for the first time ever, he’s agreed to reveal his secret in a special presentation. [Click here to discover this millionaire’s wealth-building secret.]( -- The Recession Indicator with a Perfect Record Historically, an inverted yield curve is a solid predictor of recessions. The yield curve simply measures the difference between the rate on a short- versus long-term bond. It becomes inverted when the interest rate on the shorter maturity rises above the longer one. And it works as a recession signal due to one key variable: the Fed. Typically, when short-term rates rise above longer ones, it’s due to the Fed’s aggressiveness in pushing up interest rates on the short-end. We’ve already seen three consecutive 0.75% rate hikes this year, with a fourth expected next week. The Fed is doing this to make it more expensive for individuals and businesses to borrow. Higher borrowing costs slows lending activity, which slows the economy. And that’s how the Fed hopes to tame inflation. But an inverted yield curve warns the Fed it’s starting to enter the danger zone. And one curve in particular could stop the Fed in its tracks and turn the stock market around. In fact, it has preceded every recession in the last 60 years… I’m talking about the spread between the 3-month and 10-year Treasury yield. I believe Fed members closely follow this curve when making policy decisions. The central bank even wrote [a paper about the predictive ability]( of this metric. As Fed researchers stated, “it is simple to use and significantly outperforms other financial and macroeconomic indicators in predicting recessions two to six quarters ahead.” And here’s what it’s signaling now… Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Pause the Panic On the chart below, you can see how this curve inverted below zero (black line) just last week for the first time since heading into the 2020 recession. The last recession periods are shaded in grey… [(Click here to expand image)]( This is a clear signal rate increases are starting to have a major impact on our economic outlook. But that’s where the good news for investors comes into play… By triggering this recession signal, the Fed may finally take a pause and assess their actions. [Market Wizard who predicted negative indexes in 2022 shares shocking new forecast]( The rapid pace of increases has been a major catalyst for falling stock prices, so a temporary halt can act like a pressure relief valve for stock prices. Now, don’t mistake a “pause” for an outright “pivot” to easier monetary policy. As I talked about in my [last commentary]( I still believe we’re in a bear market. But at the very least, a tactical rally in the stock market could be developing. Best regards, Clint Brewer Analyst, Market Minute P.S. I know how difficult it is to be an investor right now… But this is the perfect time to take advantage of unique, bear market opportunities. Jeff’s Clark’s latest strategy can make money no matter what’s going on… inflation, crash, recession, or volatility. So, don’t forget to sign up for his “$4 trillion market snap” briefing. [Click right here to save your seat](. Reader Mailbag When do you think the Fed will consider pausing rate hikes? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [Which would you choose?]( If you only had $5,000 to invest in the markets, which strategy would you choose? - The one that could generate only $150 in profit? - The one that could make you $29,100 in profit over the same time frame? I know which I’d choose… Yet when people choose the same, tired old strategy of buying and holding stocks… they’re choosing the option that makes them the least amount of money. Take a look… [image]( That’s a multiple of 194x MORE money… over the same time-frame! So if you’re tired of struggling with the stock market… And would rather learn how to make money the way I do, then… [Click here to find out more.]( Get Instant Access Click to read these free reports and automatically sign up for daily research. 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