Recession Indicator Going Off

[J. Mitchell Bernier]

Wells Fargo recently put out a report detailing the correlation between the inversion of the 10yr vs 1yr Treasury and predicting recessions. What they found was that when the yield curve inverted for the 10yr vs the 1yr, it predicted a recession 91% of the time with a 12-month lead time. Plus, the longer it stayed inverted the deeper and more severe the recession. As of now, the 10yr vs 1yr yield curve has been inverted for over 3 months. 

I guess we will see how much longer this goes and what it means for our investments. 

Wells Fargo - One Spread to Rule Them All: Is Recession Coming? (bluematrix.com)