We all know what the word 'performance' means. It tells us how much we can expect to get, or earn, in some cases, from our investment. This could refer to planting seeds, investing money, or many other situations. If we invest money in stocks of some kind, the return we get will be the amount of profit we get from that investment. But what about an inverted yield curve, and what does it mean for stock investors? Imagine a graph where the curve gradually goes up, indicating better returns the longer you hold your investment. Now imagine that the curve flipped from top to bottom, so what was a gradual escalation curve now shoots up rapidly before descending again. This is what we call an inverted yield curve. Now you can see from this that such a curve means that you will see some good returns on your equity investment in a very short space of time. But the longer you leave your investment in place, the lower those returns will be. In fact, it would be better for you to bail out early rather than expect better returns, because those better returns are unlikely to materialize.
We all know what the word 'performance' means. It tells us how much we can expect to get, or earn, in some cases, from our investment. This could refer to planting seeds, investing money, or many other situations. If we invest money in stocks of some kind, the return we get will be the amount of profit we get from that investment. But what about an inverted yield curve, and what does it mean for stock investors?
Imagine a graph where the curve gradually goes up, indicating better returns the longer you hold your investment. Now imagine that the curve flipped from top to bottom, so what was a gradual escalation curve now shoots up rapidly before descending again. This is what we call an inverted yield curve.
Now you can see from this that such a curve means that you will see some good returns on your equity investment in a very short space of time. But the longer you leave your investment in place, the lower those returns will be. In fact, it would be better for you to bail out early rather than expect better returns, because those better returns are unlikely to materialize.
So where does this leave you? Are these curves bad for your investments, or is there more than meets the eye? They really aren't bad at all. The only thing to remember is to monitor your investments to see if you can detect the reversed curves as they reach the peak of your cycle. This is when you need to bail out, otherwise you won't realize the best potential and returns on those stocks.
These curves are also closely related to interest rates. In fact, it has been shown in the past that a curve of this nature can herald a recession. It doesn't always happen, but it happens more often than not just by chance. You should think short and long term when it comes to those rates. The short-term ones are usually lower than the long-term ones, but when that turns, we see an inverted curve. So if you are thinking about investing or already have some inversion of the yield curve in place, remember the inverted yield curve and stay tuned. It could save you from losing money.
Learning curve for success
Each new activity requires new skills.
Babies find a tremendous learning curve. They learn to crawl, feed, walk, learn a language, and discover how to tie shoes. This continues throughout school and begins to level out at the university. In many cases, it comes to a complete halt upon acquiring our first job.
It's amazing how many people never read a book after high school. Of the number that even begins to read, a significant percentage never progresses beyond the first chapter. To add insult to injury, most of them are proud of the fact that they don't read.
The average CEO in the United States earns 439 times the income of the average hourly employee. The typical CEO reads at least 4 books a month. Although the only difference between the CEO and the hourly employee is not just the number of books they read, it is a significant factor. CEOs continue on the learning curve. They are constantly improving themselves.
If you tour the historic houses of Benjamin Franklin, Thomas Jefferson, Thomas Edison and any other historical icon, you will find a library. Leaders are readers. Leaders continue on the learning curve throughout their lives.
Most metropolitan areas include at least one continuing education institution. Now with the addition of the internet, access to online universities abounds. Continuing education becomes easier and easier with each passing technological innovation. There are no legitimate excuses to stop on the learning curve. Oh, but you say: "There is no money for classes." Public libraries are free, and even the library card is free.
"There is no time", you cry. How much time do you spend watching television? TV sitcoms add nothing to your education.
How much time do you spend coming and going from work? Use your car as a mobile university. Yes, libraries even have educational CDs available.
If you really want a turning point in your life and finances, go back to the learning curve.
Single and looking for a partner? Why not meet someone else who is raising awareness? Looking for a partner who wants to progress with his life. You will be more interesting to them if you are expanding your learning curve. They will be more interesting to you, they are moving their life up and up.
Opportunities abound for the ambitious person who expands their learning curve. Rather, zero positive opportunities are provided to the person who stops learning, growing, and mentally advancing.
Children are encouraged to attend classes, do their homework, and be successful in school. What is the magic age where people stop worrying and growing? Leaders continue to learn and grow. Leaders prosper.
Your turning point in life begins the day you return to the learning curve with a vengeance. Being persistent and consistent with improving your learning curve produces positive results in all aspects of your life.
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