FAST FIVE: The 2s10s Just Inverted: Here's What Happens Next
So why is the market freaking out.
It took a year or more for a recession to begin after six out the ten inversions (1956, 1967, 1978, 1989, 2000, and 2005).
For the ten yield curve inversions back to 1956, the S&P 500 topped out within approximately three months of the inversion six times (1956, 1959, 1965, 1973, 1980, and 2000).
There is a silver lining here, too, in that S&P correction are less severe during secular bull markets.
Looking at the 2s10s spread itself, it follows a cycle of 1) peaking and flattening to inversion, 2) spending time inverted and 3) steepening out of inversion to the yield curve peak.