There’s a lot of chatter about the inversion of the yield curve and how it’s an indicator of an impending recession. To better understand, let's take a look at both the history, and the current situation.

Remember that a recession is generally defined as two consecutive quarters of negative GDP growth. It’s a period of economic decline with a reduction in trade and industry activity, and a natural part of the business cycle. There are multiple other characteristics associated with recessions, but for our purposes, the general definition is adequate.

What’s the yield curve? Click on this link (View the orginal post here) to read the full article on Forbes.com. 

 

 

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Originally posted on March 29, 2019 on Forbes.com by Leon LaBrecque, Forbes Contributor.

View Leon LaBrecque's Forbes contributor profile and other blog posts here: https://www.forbes.com/sites/leonlabrecque/

Image: Getty, Forbes.com original post.

 

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FORBES.COM - Recessions And Yield-Curve Inversion: What Does It Mean? | Sequoia Financial Group

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