Should the Coming Yield Curve Inversion Frighten Investors?

A recent article in Forbes discusses the growing buzz about an impending yield curve inversion and the repercussions for the economy and stock market.

“Inverted yield curves have successfully warned about each of the seven recessions over the past 50 years,” the article reports, “which is why investors keep an eye out for them.” When an inversion takes place (the difference between short- and long-term yields falls below zero), the article notes, it “warns that a recession and bear market are typically not far off.”

The article cites historical data suggesting that if the yield curve inverts in December 2018, “the current bull market would peak in September 2019 and the next U.S. recession would start in February 2020:”