Placing your emergency fund money in a high-yield savings account is often a better option than a traditional savings account.d3sign/Getty
Good morning. Today we're breaking down why some analysts are pointing to one market indicator as a reason for an imminent recession. Plus, there's a chart that shows why inflation is hitting car owners and car buyers particularly hard.
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Let's get into it.
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1. The bond market is close to flashing a key indicator of a coming recession. The yield curve is on the verge of becoming inverted, with the likelihood of a downturn growing since the Fed raised interest rates. Short-term rates are inching up, and if they surpass longer-term rates, it usually means markets are out of whack.
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Bank of America said Friday that the 10-year Treasury yield has fallen below the 2-year rate ahead of eight of the last 10 recessions.
As of Monday, the US 10-year Treasury rate was 2.1%, while the US 2-year Treasury rate was 2.3%. Yields on the 5 and 10-year notes, meanwhile, are already slightly inverted.
But it's worth noting an inversiondoes not guarantee a recession as a standalone indicator, said the bank. Other factors play a role.
3. Earnings on deck: Adobe, Carnival Corp, and Filo Mining, all reporting.
4. This batch of beaten down tech stocks with strong cash flow are primed for a rebound, according to Bank of America. These smaller tech firms are potential bargains because they're profitable and deliver steady cash returns — see the list of 15 here.
9. A hedge-fund strategist outlined four bearish factors signaling further pain ahead in stocks. "A more substantial equity and high yield corporate credit de-risking is probably in the cards," says Peter Cecchini. He advised selling on any upcoming rallies.
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10.Inflation is getting harder to avoid. From the dealership to the gas pump, even owning a car is presenting steeper challenges. Gas is spiking, and the price of buying a new car has climbed more than 14%. See how inflation is impacting other parts of everyday life.
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