
PRUDENT INVESTORS PAY ATTENTION TO THE YIELD CURVE – RECESSION INDICATOR
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Yield Curve
Please click here for a chart of the yield curve.
Note the following:
- The chart goes back to 1976.
- The chart shows the difference between the yield on 10-year Treasuries and 2-year Treasuries.
- The gray bars on the chart show recessions.
- The chart shows that when the yield curve inverts it is followed by a recession.
- The stock market is likely to top out six to twelve months before a recession.
- The other economic indicators that The Arora Report follows and shares with you in the Morning Capsules are not showing any signs of recession in 2022 at this time.