Part 4/10:
Another economic indicator worth noting is the inverted yield curve, which recently reappeared when the 10-year treasury yield fell below that of the 3-month treasury. Historically, this inversion precedes a recession by 12 to 18 months. Critics may argue that a prior inversion occurred in 2022 without a subsequent recession, but there is a strong sentiment that an economic contraction has indeed been ongoing, albeit unacknowledged. This reluctance to concede a recession often results in a delayed recognition of economic distress, creating a scenario where the consequences are more severe by the time they are officially acknowledged.