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https://www.cnbc.com/2019/10/08/inverted-yield-curve-guru-campbell-harvey-prepare-for-recession.html
The father of the yield curve indicator says now is the time to prepare for a recession
Key Points
Duke University professor Campbell Harvey says the bond yield curve is “flashing code red” for a recession.
The yield for the 3-month Treasury has been above the 10-year since May, a condition known as an inverted yield curve that has predicted the past seven recessions.
Harvey encourages investors, business executives and consumers to prepare now.
Investors, business owners and consumers should be heeding the message that the inverted yield curve is sending, according to the researcher who pioneered the economic forecasting model.
Duke University professor Campbell Harvey said people shouldn’t wait for the economic downturn he anticipates before taking preventive measures.
“This is the time where you need to reflect upon your strategy. It’s actually easy to manage assets when the economy is booming. It’s much more difficult to manage into a turning point,” Harvey told Josh Brown, CEO and co-founder of Ritholtz Wealth Management and a CNBC “Fast Money” contributor, in an interview for “The Compound” on YouTube. “It’s way better to have a plan to go by than to find yourself in a situation where the recession hits and you have to improvise.”
The father of the yield curve indicator says now is the time to prepare for a recession
Key Points
Duke University professor Campbell Harvey says the bond yield curve is “flashing code red” for a recession.
The yield for the 3-month Treasury has been above the 10-year since May, a condition known as an inverted yield curve that has predicted the past seven recessions.
Harvey encourages investors, business executives and consumers to prepare now.
Investors, business owners and consumers should be heeding the message that the inverted yield curve is sending, according to the researcher who pioneered the economic forecasting model.
Duke University professor Campbell Harvey said people shouldn’t wait for the economic downturn he anticipates before taking preventive measures.
“This is the time where you need to reflect upon your strategy. It’s actually easy to manage assets when the economy is booming. It’s much more difficult to manage into a turning point,” Harvey told Josh Brown, CEO and co-founder of Ritholtz Wealth Management and a CNBC “Fast Money” contributor, in an interview for “The Compound” on YouTube. “It’s way better to have a plan to go by than to find yourself in a situation where the recession hits and you have to improvise.”