Excerpt from Reuters quoting DataTrek’s Nick Colas:
…. “And, even if the latest kink in the yield curve is indeed the first signal of a downturn as many suspect, it does not indicate when it will actually begin nor how severe it will be.
“It’s a sloppy predictor because at some point after yield curve inversion you could get a recession that could be one year, two year, three years,” said Nicholas Colas, co-founder at DataTrek Research in New York. “And as far as what it means to markets, you could still have another very solid year after inversion”….
Read the full article here on Euro News!