While history does not always repeat, prudent investors should still be students of it. Something has happened now that should be understood in the right light.

When it happened last, many investors lost about half the value of their portfolio. It was a common joke that 401(k)s had become 201(k)s. Let’s explore the issue with the help of two charts.

Two charts

Please click here for a chart showing the yield curve.

Please click here for an annotated chart of S&P 500 ETF SPY, +1.74%. Even though many investors focus on the Dow Jones Industrial Average DJIA, +1.72%, it is better to use the S&P 500 or Nasdaq 100 ETF QQQ, +2.29%. For the sake of transparency, this is the same chart that was previously

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