Yield curve steepening has signaled past market turmoil, Patrick Karim notes

Yield curve steepening has signaled past market turmoil, Patrick Karim notes
Yield curve steepening precedes market turmoil

Patrick Karim, technical analyst at Technical Traders Ltd, draws attention to the historical pattern where simultaneous declines in 2-year and 10-year yields, followed by a steepening yield curve, have been linked to significant market turmoil.

He points out that this dynamic occurred in 2000, 2008, and 2020 but suggests that, despite a recent opportunity for repetition, this pattern is not present in current conditions.

Karim has previously projected a generational move for crude oil, with price targets reaching as high as $400 per barrel. He also highlighted technical signals that suggested the financial sector should closely watch crude oil's path toward $300 per barrel. Both views were based on his chart analysis at Technical Traders Ltd.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.