Our first research topic involves using two leading economic indicators, the yield curve and the VIX term structure, to construct an optimal investment portfolio.
The following video illustrates the development of these two indicators along with some important market indices before, during and after the market collapse of 2020.
The viewer should observe the instances where the yield curve (left panel) and the VIX term structure (right panel) invert, since these instances can be important signals, or consequences, of market disorder. For the full video spanning from 2013 to 2021, click here