FernandoHilario

Yield Curve Inversion + S&P500 strong retractions

Chart showing lead time between the curve inversion and the start of the stock market crashes along the time.

Longest lead time was around 760 days (+2 years)
Shortest lead time was 4-5 months.

Consider a 6 months as a rule for your readiness:
- Build up cash reserves.
- Partial sells of variable income equities (stocks, crypto, etc).
- From 4-6 months forward, start buying OTM SP500 options, specially when VIX is on support levels. (Bear Put Spreads are also a viable alternative).

Start of the crash, what to do:
- When SP500 has fallen around 20-30% from its peak, start buying variable income equities (stocks, crypto, etc).
- Sell your OTM put options
- ALWAYS KEEP SOME CASH RESERVE!
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