On the Edge of a Recession? And How to Protect your Investments?

[Jorden Glasco]

As I'm sure most of you have seen plastered all over CNBC today, the yield curve for the 10-year treasury note broke below the 2-year rate. Also, if you watch real estate YouTubers, such as MeetKevin, they have been talking about this in recent days. Fearing that this would happen.

Now, this might not spell disaster right away. But, this may be a good sign to stay on your toes for the next year or two.

Here's a text from the article:

"There have been five inversions of the 2-year and 10-year yields since 1978 and all were precursors to a recession, but there is a significant lag, according to data from Credit Suisse. A recession occurred, on average, 22 months after the inversion, Credit Suisse shows. And the S&P 500 actually enjoyed average returns of 15% 18 months after an inversion before it eventually turns.

The last time this key part of the yield curve inverted was in December 2005, two years before the recession hit."

So this begs the question, what do you think of this potential recession and how are some of you looking to protect your assets?

As someone who is about to (hopefully) close on his first duplex, I am curious about how I can protect myself from losing money on this deal and future investments.

Link to article: 

https://www.cnbc.com/2019/08/14/stock-markets-wall-street-in-focus-amid-earnings-economic-data.html

Thank you