Pimco says the yield curve inversion may be a false alarm for recession due to QE and US large-cap stocks are the 'best place to be right now'

From markets.businessinsider.com

A key segment of the Treasury yield curve inverted this week for the first time in nearly three years, but fixed-income specialist Pimco told Bloomberg it may no longer serve as a reliable warning of an upcoming recession and recommended investors hold big-cap stocks. "There's reason to believe that this time around, yield curve inversion may not be as good of an indicator as it has been in the past, particularly given the enormous amount of quantitative easing undertaken by global central banks," said Erin Browne, a fund manager at Pacific Investment Management Co., said in a televised interview. On Tuesday, ... (full story)