How are people reacting to a flattening/inverted yield curve?

[Ryan Carriere]

Over the last few days, the Treasury yield curve has slightly inverted for the first time in about a decade. My understanding is that many people consider the Treasury yield curve to be an, imperfect, indicator of future economic recession/expansion. What are people doing differently, if anything, with this information?

[Jaysen Medhurst]

@Ryan Carriere, imperfect indeed...

I'm not doing anything different. Remember the rates are a reaction to the collective market actions of individuals. Individuals who are trying to divine the future.

That being said, a recession IS coming. A downturn in housing IS coming. The question is when. I've heard very smart people (often on the BP podcast) say it's "just around the corner" for 3+ years. No one can time the market and it's a fool's errand to try. 

The upshot for investors is a potential cooling of prices and maybe interest rates don't continue to rise. The Fed says they plan to continue to raise, but we'll see. They may get cold feet if the economy really starts to slow down.

Make a plan, work the plan, adapt the plan when circumstances change.