Kingsguard Capital addresses the effects of an inverted yield curve and how you can protect yourself during a recession.
RICHMOND, Va., March 22, 2023 /PRNewswire/ -- There has been a lot of talk lately about the Inverted Yield Curve and the possibility that it may indicate a recession. This is causing even more uncertainty during uncertain times. When asked about potential ways to mitigate the effects of the current interest rate environment, Jessica Cervinka, president of Kingsguard Capital had the following to say: "Let's discuss what an inverted yield curve is and 5 ways you can protect yourself during a recession.
An inverted yield curve is a where the yield on short-term bonds is higher than the yield on long-term bonds. This is unusual, normally, investors expect to earn higher yields on longer-term investments for the risks associated with tying up their money for a longer period.
Inverted yield curves are often seen as a sign of economic uncertainty or even a potential recession in the future. When it comes to the stock market, an inverted yield curve is generally seen as a negative signal. This is because it suggests that investors are losing confidence in the economy and may be more cautious about investing in stocks. As a result, stock prices may fall.
It's worth noting that the relationship between an inverted yield curve and the stock market is not always predictable. While there is some historical evidence to suggest that an inverted yield curve often precedes a stock market downturn, there have also been cases where an inverted yield curve did not lead to a significant decline in stock prices. Additionally, there are many other factors that can affect the stock market, so it's important to consider a range of indicators when making investment decisions.
Examples:
One of the main concerns is that an inverted yield curve is often seen as a predictor of an economic recession. A recession can have a range of negative effects on businesses, workers, and investors."
So, what Can You Do to Protect Yourself? Cervinka provided the following advice:
All these key factors are a part of a good solid financial plan.
Start with your foundation, emergency cash and reliable income sources then build from there. A financial professional can help you stay on track and create a plan that is customized to your situation and risk tolerance.
About Kingsguard Capital
Through Kingsguard Capital's truly customized, holistic, and collaborative approach to financial planning, the team helps families not only protect but grow their retirements. Integrity and reliability are the North Stars of the organization, and as an independent advisory firm, Kingsguard Capital is empowered to let those attributes guide them.
Advisory services are offered through Kingsguard Capital LLC, a Registered Investment Adviser in the state of Virginia & Florida. Insurance products and services are offered through Reliant Retirement Corp DBA Safegrowth Financial LLC, an affiliated company. Kingsguard Capital is a Registered Investment Adviser firm CRD# 296945.
Media Contact:
Sal Velazquez
(213) 347-9353
[email protected]
SOURCE Kingsguard Capital
These press releases may also interest you
|