This has happened only thrice in 100 years, each time it ended in disaster
Yield curve inversion is almost universally regarded as one of the most reliable predictors of an upcoming recession and the stock market crash that usually accompanies recessions. That’s why we must be extremely cautious right now, given the massive inversion we’ve recently witnessed in the yield curve.
What’s particular concern is that this is only the fourth time in recorded history that we’ve had a yield curve inversion lasting more than 500 days. And each of the previous three instances ended disastrously for both the economy and the markets.
The first was in 1929, which was of course followed by the Great Depression and the Dow Jones crashing by almost 90% (between 1929 and 1932).
The second instance came in 1973, post which the S&P 500 crashed by almost 50%.
And finally the third instance occurred in 2006–07, which was followed by the Global Financial Crisis of 2008 and the S&P 500 crashing by over 50%.
So, is the US economy and equity markets headed for a similar fate in 2026? That’s exactly what I discuss in this video; so please do watch it till the end.
So Do watch the full video on ”This has happened only thrice in 100 years, each time it ended in disaster | Indraanil Guha English"
