Grab a drink and grow your finance acumen

While people were quick in deriving parallels from the past recessions when the spread between 2 year and 5 year treasury notes went negative, the first inversion of the yield curve since 2007, there doesn’t seem to be any unanimous consensus on what could lead to a next recession. It’s been an unprecedented turn of events that has left the market pondering about whether there will be a recession or not. On one hand, we have these signs of economic contraction with long term yields getting lower than short term yields posing a fundamental risk to financial institutions, on the other, strong GDP numbers, lowest level of unemployment and positive inflation give an all-together different picture. While it's rational to think that economy won’t grow as much as it has in the past year, saying that there will be a recession next year is a little far fetched. Public reaction towards wide spread dissemination of a possible recession has led the market to one of the sharpest declines ...