Though the US yield curve remained some way from inversion — which historically is often cited as signaling an impending recession — investors were relatively sanguine about the significance of its flattening, with many arguing that low long - term yields were more reflective of central - bank policies and the weak inflationary environment than
dimmer economic prospects.
It's the fact they wake up to a shrinking portfolio... and suddenly realise their currency's dumped, their housing market's locked up (& their house value's probably dumped too), not to mention their employment &
economic prospects may also have
dimmed substantially.