A common statement I hear from those who are frequently involved in the stock market is that another recession is on the way. This is something I hear all the time as someone who works in the financial industry. They’ve been saying that since before 2020, and they’re saying it again today.
The only reason for the recession in 2020 was due to the virus that caused the entire planet to shut down. As a result of this tragedy, our world has changed profoundly, and it will take a decade or more to fully recover from the ramifications.
In my opinion, the entire situation has been resolved. Personally, I never give it much though, just as I never consider the flu to be a problem, because I never get it.
In any case, as I previously stated, there is widespread belief that we are in the midst of yet another recession, and the reason for this belief can be traced to a pattern that hasn’t been seen since the Great Recession of 2008.
According to CNBC,
The 2-year and 10-year Treasury yields inverted for the first time since 2019 on Thursday, sending a possible warning signal that a recession could be on the horizon.
The bond market phenomenon means the rate of the 2-year note is now higher than the 10-year note yield.
This part of the yield curve is the most closely watched and typically given the most credence by investors that the economy could be heading for a downturn when it inverts. The 2-year to 10-year spread was last in negative territory in 2019, before pandemic lockdowns sent the global economy into a steep recession in early 2020.
The yield on the 10-year Treasury fell to 2.331%, while the yield on the 2-year Treasury was at 2.337% at one point in late trading Thursday. After a brief inversion, both yields were basically trading at the 2.34% level in the latest trading.
Would I be surprised if we experience another recession? Of course not! Look who we have running this country like an idiot. He’s literally implementing every policy that he can come up with that would make this country worse and the biggest problem is really that he’s too stupid to see it and the Democrats are too stubborn to say anything about it. They just role with the punches because he’s a Democrat and because they’re all rich so they’ll be okay. It’s the little guys like us who ultimately end up hurting.