THERE is an awful lot of chatter about recession at the moment. Experts are poring over short-term and long-term bond yields in search of signs that an economic downturn could be around the corner.
Generally, we would expect long-term bond yields to be higher than the yield on short-dated notes. If they aren't, then it could mean that economic growth could not only slow, but it might even go into reverse. That is why some people closely monitor yield-curve inversions.
So, here's the thing: recessions are nothing out of the ordinary. They generally happen after long periods of economic growth. It is the economy's way of telling us that it is time to take a breather and digest the growth that we...
Keyword added to your list