Recession Warning: 12 Things for Investors to Know

Changes to bond yield rates are behind the news

A recession warning is making the rounds following news that could be a negative sign for the economy.

Recession Warning: 12 Things for Investors to Know
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Here’s what to know about the most recent recession warning.

  • The news that has investors worried about the economy has to do with bond yield rates.
  • This has bond yield rates for the two and 10 year ratios inverting.
  • So what exactly does this mean for the economy?
  • Well, it could be nothing, but there are concerns about it being a recession warning sign.
  • This is due to a 2/10 bond yield inversion preceding ever major recession in history.
  • However, it could be some time before investors actually see a recession.
  • For example, the last time this happened before a recession was in 2005 and the recession didn’t start until 2007.
  • This could also be a sign that investors will start investing even more into bonds are they prepare for a rocky economy.
  • Some analysts are noting that they don’t expect this to lead to a recession in 2019 or the following year.
  • Despite this, there are others that say this is a bad sign no matter what. Even if it doesn’t lead to a recession immediately.
  • There are also concerns that the U.S. has never dealt with a recession while holding as much debt as it does currently.
  • To top it off, the ongoing trade war with China could also have a negative impact if a recession starts.

You can follow these links to learn more about the recession warning and what it means for investors.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/08/recession-warning-things-for-investors-to-know/.

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