A Nobel-winning economist says to forget yield curves— this may be what really fuels a recession. (via CNBCMakeIt)
, the Nobel-prize winning economist and Yale professor, says he's not convinced it will hold true this time around.
It's also worth noting that generally an inverted yield curve is considered a strong indicator of an upcoming recession if it has some staying power. So far, both of the recent inversions of the 2-year to 10-year spread have been brief. But that doesn't mean investors should panic thinking a recession will hit tomorrow. On average, there's been a 17-month lag between the inversion and the last five recessions, according to research from Ben Carlson ofBefore you rush to empty your 401 and stuff that money into a mattress, keep in mind that recessions aren't exactly bad news for millennials right now.
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