If you’ve been paying any attention to the stock market and financial headlines over the past few weeks, you’ve likely noticed a lot of turmoil and the term “inverted yield curve” being used quite frequently.
Since 1955, an inverted yield curve has preceded all nine of the U.S. recessions that have occurred. Usually, the curve inverts about two years before a recession hits, so it can be an early warning sign.
The current inversion of the yield curve doesn’t mean that a recession is definitely going to happen within the next few years, but it is one indicator.
What exactly is an inverted yield curve, and what does it mean for the economy and your finances?Read more