Financial media loves to make connections that’ll predict the next great recession. Are inverted yield curves a bad omen or just a coincidence?

News headlines are stoking fear by saying that an inverted yield curve have predicts a recession within two years. Two years is an absurdly long time in the financial world and the factors that caused previous inverted yield curves are not causing the yield curve inversions we are seeing today. No one doubts the global slowdown is occurring, but corporations are finding ways to adjust and do business. Also:

• What is the yield curve?
• Is the inverted yield curve a predictor or coincidence?
• Signs of inflation
• Investing for the next 5-10 years
• The best thing to do during a market correction

 

 

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