Michael Pento, the president and founder of Pento Portfolio Strategies and author of the book, «The Coming
Bond Market
Collapse», and the producer of weekly podcast, «The Mid-week Reality Check», wrote in his commentary on CNBC that «the
yield curve will invert by the end of this
year and an equity market plunge and a recession is sure to follow».
The bank prime rate — the analogy to Libor today — peaked at 21 % and in November of 1981 the Treasury sold 30
year bonds with a 14 % coupon which out - performed the S&P 500 the next
year as
bond yields collapsed So much for ancient history.