History tends to repeat itself
History tends to repeat itself.
In 1988 and 1998, tech stocks struggled before a 10-2 inversion, then soared for months. In 2006 and 2019, tech stocks struggled before a 10-2 inversion, then soared for months.
I sound like a broken record, right?
Well, here we are in 2022. And tech stocks are struggling while the 10-2 yield curve just inverted.
It's clear what comes next: a huge tech stock rally.
Philosophically, this makes a ton of sense. You must understand that markets are forward-looking. They price things in before they happen, so markets anticipate the effect of a yield curve inversion before it happens. That causes stocks to move lower. Then, once the yield curve inverts and there's no recession happening, investors breathe a sigh of relief. And they proceed to pile back into stocks.
It happens every time. This time is not different.
History is repeating itself, folks. This means that following yesterday's yield curve inversion, tech stocks are due for a massive melt-up over the coming 12 months.
$Apple(AAPL)$$Microsoft(MSFT)$$Alphabet(GOOGL)$$S&P 500(.SPX)$$NASDAQ(.IXIC)$$DJIA(.DJI)$
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