Where’s the recession? These 3 economic indicators can alert investors to a market downturn
Analysts have called for a U.S. recession all year, but stocks continue to creep higher. Here are three metrics investors can watch to know if an economic downturn is coming. Inflation came down a lot faster than most investor s and analysts anticipated, reaching 3% in June. The recession that most analysts predicted is nowhere to be seen, according to the 3.6% unemployment rate nearing a 50-year low and the S&P 500 Index showing a 19% gain year-to-date. While the current market performance may lead investor s to believe that a recession has been avoided, there are three metrics that have been able to consistently predict recession s over time. These leading economic indicator s are key economic variables that tend to move ahead of changes in overall economic activity, providing an early warning system for changes in the business cycle. Let’s dig into three of these indicator s and explain how investor s can interpret them. Yield curve inversion The yield curve represents th...
