Goodbye Inverted Yield Curve

JC Parets
March 16, 2023

Ever since the 2-year yield bottomed in Q1 of 2021 Technology stocks have struggled. Growth became the worst place to be.

It was NOT a coincidence that once those rates started to rise in early 2021, the Nasdaq New Highs list peaked, the Nasdaq Advance-Decline line peaked, all the ARK Funds peaked, Chinese internet peaked, Biotech peaked and everyone piled had into SPACs before they all came crashing down.

Because the 2-year yield was rising so fast, and the longer end of the curve couldn't keep up, we got the mother of all yield curve inversions.

The media loves to scare people with it because I think an inverted yield curve has predicted something like 50 of the last 8 recessions.

But now it's bon voyage yield curve inversion. Good riddance!

We're seeing the largest 5-day rate of change in the yield curve since the early 1980s:

The inversion is technically still there, but at the rate it's going, it could only be for a few more days, maybe even a few hours.

So great. Why the hell should anyone care?

Well, getting back to my earlier point about Growth stocks living in struggle city with rising interest rates, we are now seeing the exact opposite.

With the recent volatility in Financials and other select parts of the market, we're seeing strength coming into Tech and other Growth.

These trades are working very well in this environment.

Our $META position closed yesterday at new 9-month highs!

On TV they tell you to panic. They even do sunday night specials about it for people with too much time on their hands. But if you turn that garbage off and just look at what's actually happening, you'll see plenty of strength underneath the surface.

This is the perfect environment for our 2-to-100 Club, which are the stocks we think have a chance to be the next $100B company. You won't find any Staples, Utilities or other types of stocks on the list that can't scale very fast.

This is a growth-heavy list of names. Here's this week's list sorted by relative strength:

There are 2 stocks in particular that we want to be buying this week from our list.

Premium Members make sure to check out those details here.

Also, this coming Monday night is our LIVE VIDEO Conference Call.

We'll be going over everything that's happened in the market, what's changed, what's stayed the same, and how we want to approach the current environment.

We'll have a list of new trades we want to be putting on as well - you better believe it!

Premium Members make sure to register here for that, if you haven't already.

See you there!

JC

 

 

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