Gazing into the recession crystal ball | Reuters


Recession fears were sparked earlier this year when the yield curve inverted – a key indicator of a pending downturn.

An inverted yield curve occurs when yields on short-term bonds are higher than those on long-term bonds, a sign investors are so worried about the future that they are willing to hold long-term bonds, which are usually viewed as a safer alternative to stocks and other investments, even when the payouts are low.

While concerns have eased, an economic rebound is not expected any time soon, according to a recent Reuters poll of economists, and pockets of the economy and markets which are causing concern. Slowdowns were seen in manufacturing and private payrolls data out this week.

Source: Gazing into the recession crystal ball – Reuters

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