Chart for reference: https://fred.stlouisfed.org/series/T10Y3M
As many of you know, this yield curve is considered a “recession indicator” and has a lot of economic research to back it up. You can look at the chart to see that is has a high success rate. The theory behind is that once the curve has been inverted for a few months, a recession is likely within the next 18 months.
As an investor, are you reacting to this chart to change your strategy?
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