Recession WARNING: This 60-Year Perfect Indicator Just Flashed!
What if there was one single indicator that has accurately predicted every US recession for the past six decades? Shockingly, such an indicator exists in the financial world: the 10-year/three-month Treasury yield spread. This critical spread becomes inverted when long-term yields drop below short-term yields, signaling that the market anticipates the Federal Reserve will soon be compelled to cut interest rates due to a weakening economy. Historically, this inversion has consistently preceded U.S. recessions by an average of six to twelve months, predicting the last six downturns. Understanding this powerful signal is crucial for investors, so make sure to subscribe to our channel for more vital financial insights.
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