Yield Curve Inversion Predicts Next Recession

Written by Staff Writer

inversionYield Curve Inverts For The First Time Since 2007: Recession Countdown Begins -Zero Hedge
"The most prescient recession indicator the market just inverted for the first time since 2007. Don't believe us? Larry Kudlow last summer explained the reason investors focus on the 3-month to 10-year spread is that it has preceded every recession in the last 50 years. On six occasions over the past 50 years when the three-month yield exceeded that of the 10-year, economic recession invariably followed, commencing an average of 311 days after the initial signal.

And here is Bloomberg chart showing how the yield curve inverted in 1989, in 2000 and in 2006, with recessions prompting starting in 1990, 2001 and 2008. This time won't be different."