Economists recently reported the correction of the yield curve inversion. Is the recession averted? You came here for the truth and we are here to uncover it for you.
You may have heard in the last few months about the treasury yield curve inversion that started in May. Many news outlet were speaking of an upcoming recession as of this inversion. This week, economic data has shown that the treasury yield curve inversion righted itself moving back into the positive. The news are all over this news saying that a recession has been averted.
You may have heard in the last few months about the treasury yield curve inversion that started in May. Many news outlet were speaking of an upcoming recession as of this inversion. This week, economic data has shown that the treasury yield curve inversion righted itself moving back into the positive. The news are all over this news saying that a recession has been averted.
But is it really averted?
Looking at the 2008 recession, the yield curve inverted in 2006 and the recession followed 1-2 years after it corrected itself into the positive.
Youtuber Alessio Rastani is suggesting the idea of a double dip inversion that could happen just like the recession of 2008. If this is the case, the recession could be a year or two away as opposed to in just a few months.
On the other side, we have industry influencers like the Federal Reserve Chairman, Jerome Powell, insisting that a recession will not happen and this un-inversion could be seen to support that claim but history has shown that institution announcements tend to trail the status of the market and no FED chair person would admit recession until we’re half way into one.
A bull market can only last for so long. It has been more than 10 years since 2008 and the economy usually goes in a boom-bust cycle. One can’t expect the economy to grow forever but these guys do.
Only time will tell when it is happening and it’s important to prepare yourself in the event the recession occurs. Contrary to most beliefs, recession can be a wealth generating opportunity. Stay tuned in and see our recession section to learn how to keep yourself updated on how to prepare and make the most of a recession.