Part 5/8:
The yield curve is another critical economic indicator that has historically signaled recessions, and currently, it is experiencing significant inversion. The depth of inversion is presently marked at -1.88, representing one of the largest inversions since the 1980 energy crisis. History suggests that contractions typically follow, giving rise to recession predictions between six to eighteen months post-inversion.
Furthermore, S&P Global has highlighted that out of nine leading indicators related to economic health, four are currently signaling negative growth. This situation prompts concerns among investors about the resilience of consumer sentiment and spending in the face of prolonged high-interest rates.