2020 recession scare. Should you care?
Never was it more true – all we have to fear is fear itself. A tweet here, a twitch there, and market confidence collapses. Add in a graph of an inverted yield curve and another podium spot for Greta Thunberg, and it’s the stuff of nightmares. Here I explore the recession nightmare.
In the Summer there was a negative yield curve, and, as a result, markets braced for an instant recession. Do you know what a negative yield curve is? Don’t bother giving it too much thought. It is meant to be a recession indicator. It isn’t. And to the extent that it might be, occasionally, it doesn’t add any practical information on how to invest or whether to invest at all.