The Inverted Yield Curve Is a Warning Signal for a Recession

In 1980, grandmother locked in at 12% on 30-year US treasuries. At the same time, there was 18% fed funds for 18%. I have never heard anybody tell a story of their grandmother locking in at a T-bill for three months or six months. That's not common. So that's why there's these opportunities to lock in. Sometimes it works. Sometimes it doesn't. But at these elevated yield levels, you kind of have to say, look, that does look pretty attractive and if I can get 5% to own something for 30 years, I'm okay with that. And maybe it works out. Maybe it Doesn't.