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Should you worry about the yield curve inversion?

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A 10Y-2Y YC inversion is not a sufficient condition for recession. But historically the inversion has been followed by increased volatility in stock prices and slower economic growth a year later. The risk of recession will rise more meaningfully if financial conditions tighten and/or the weakness in manufacturing spreads to services.

Ned Davis Research | Economics | U.S. Focus | Monthly

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