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While spending is not vigorous, it hasn’t plummeted either, suggesting a cautious spending approach. Looking back, the implications of an inverted yield curve do not surface until it begins to normalize. According to investment firm Dunham, a steepening yield curve often signifies that the Fed is trailing behind economic challenges.
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This indicates that the story is primarily one of low demand – or more specifically, low Chinese demand. For the time being, however, and especially with Saudi Arabia recently winning the bid for the 2034 soccer World Cup, efforts to maintain a semblance of stability in the Gulf are encouraging. While it’s not time to abandon this market, a cautious approach is essential. Legendary investor Louis Navellier describes this as a stock picker’s market.
