What Is The Yield Curve? Why Is It Important? 1

The shape of the yield curve gives us important indications of what the future holds for the economy

The mainstream media has been focused on whether or not the US yield curve indicates a looming recession, which implies that what they want to know is whether or not a recession will occur.

To them, it is a binary outcome: recession = bad for markets, and no recession = good for markets.

Unfortunately reality isn’t so simple.

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