Yield on AAA-rated corporate bonds have remained inverted since 18-months for 10-year and 3-year, and since 13 months it is inverted between 10-year and 5 years.
Yield curve inversion is usually a pointer to an impending recession, but there is a good chance that the US may manage a soft-landing this time
Rather than equities, investors should look to increase their allocations towards safe haven physical assets such as gold and silver, which have historically outperformed equities during periods of uncertainties as well as elevated inflation.
In India, given the growth and inflation, the rate of interest won’t turn negative, at least any time soon.
Robust economic growth expectations, lower real policy interest rate and relatively limited spread between US high bond yields and treasury temper any concern on inverted yield curve