The Tell: Here’s when the yield curve actually becomes a stock-market danger signal

Some investors are flipping out about the flattening of the yield curve, but history indicates that any histrionics are likely premature, says one prominent Wall Street analyst.

“From our perspective, the only time investors should worry about the yield curve implications is when (if) it inverts,” wrote Brian Belski, chief investment strategist at BMO Capital Markets, in a Thursday note.

The curve is a line that plots yields across all debt maturities. It typically slopes upward, with investors demanding a premium to compensate for risks that can develop over time. A flatter curve can signal concerns about the economic outlook.

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