In this episode of Money Well Studio, hosts Julie and Jennifer take listeners on a guided tour through one of the most talked-about economic indicators: the inverted yield curve. What does it mean when short-term interest rates outpace long-term ones—and why does it often make economists sweat? From the basics of bond yields to the psychology driving investor behavior, the hosts break it all down with clarity and wit. You'll also hear the fascinating origin story of Campbell Harvey, the Canadian economist who first connected the dots between inverted yield curves and recessions. Along the way, Julie and Jennifer explore the Federal Reserve’s role, the impact of inflation and stagflation, and offer grounded advice for families looking to weather economic uncertainty with confidence and calm.

🍹 Cocktail of the Episode: The Tequila Sunrise

Just like the inverted yield curve, this drink starts sunny and takes a dramatic turn. Sip it as we dive into a conversation about shifting financial signals, investor psychology, and navigating uncertain terrain with style.

Tequila Sunrise Recipe

• 2 oz tequila
• 4 oz orange juice
• 1/2 oz grenadine (drizzled down the side)
• Garnish: orange slice & maraschino cherry

Instructions:

1. Fill a glass with ice.
2. Pour in the tequila and orange juice—don’t stir!
3. Slowly pour the grenadine down the side of the glass. It will sink, creating that signature sunrise gradient.

4. Garnish, toast to clarity, and enjoy!