This indicator is flashing recession signs. Tips for your investment
[ What's new ]
· U.S. 5-year and 30-year Treasury yields on March 28 inverted for the first time since 2006.
· The U.S. 2-10-year yield curve briefly inverted for the first time since August 2019 on March 29, raising fears of a possible recession.
![Source: moomoo, until 2022/3/30](https://ussnsimg.moomoo.com/4114793611324874768.png/bigmoo)
[ Why does it matter? ]
Historically, the two- and 10-year Treasury yield curves inverted before each recession since 1970, with a recession following after 17 months.
It's a sign that the market thinks interest rates will have to fall in the future, which implies slower growth or even a recession.
![This indicator is flashing recession signs. Tips for your investment](https://ussnsimg.moomoo.com/4181957194908495619.png/bigmoo)
However, analysts have some positive opinions.
"An inversion without a recession is more likely." said Seth Carpenter, chief global economist at Morgan Stanley.
"There's nothing magical about a yield-curve inversion," said Caldwell, adding that it doesn't mean the economy is going to shrink. "It's not a light switch that's flipped."
Note: It doesn't work all of the time, but it has a high rate for portending a future recession.
[ The yield of treasury bonds ]
The yield on U.S. Treasury bonds is a key metric investors watch as it impacts other asset prices, feeds through to banks' returns and has been an indicator of how the economy will fare.
![This indicator is flashing recession signs. Tips for your investment](https://ussnsimg.moomoo.com/6757343841799311099.png/bigmoo)
![This indicator is flashing recession signs. Tips for your investment](https://ussnsimg.moomoo.com/2313105947076639969.png/bigmoo)
You cannot predict the future, but you can protect yourself. For now investors could brace themselves for market swings.
- Safe-haven stocks
Certain safe haven stocks might be expected to outperform during market turmoil, such as Utilities, Consumer Staples, and Healthcare.
For example
How to find different industries on Moomoo?
![This indicator is flashing recession signs. Tips for your investment](https://ussnsimg.moomoo.com/614113027465062599.png/bigmoo)
-ETF
Should you consider gold ETF?
You can choose different ETF types according to your preference and allocation.
How to find an ETF on Moomoo? ![]()
![This indicator is flashing recession signs. Tips for your investment](https://ussnsimg.moomoo.com/9010708575437019893.png/bigmoo)
Note: All safe-haven assets aren't guaranteed to produce positive returns in all market downturns.
-How ETFs work?
-How to invest ETFs for maximum return.
-What are the disadvantages of ETFs?
Get you prepared now
![This indicator is flashing recession signs. Tips for your investment](https://ussnsimg.moomoo.com/5655028283933182687.jpg/bigmoo)
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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