Chris Dillow 

Mutual misunderstandings

Chris Dillow

Chris Dillow

It’s not just equity investors who should worry about the inverted gilt yield curve. So, too, should property investors because the curve also predicts a weaker housing market. Since 1975 house prices (as measured by the Nationwide) have risen by an average of only 1.4 per cent a year in real terms after three-month rates have been above 10-year yields. That compares with an average rise of 3.8 per cent a year after the curve has been upward-sloping.

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