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Inverted Yield Curve and Recession?
![Contain 800x800](https://bpimg.twic.pics/no_overlay/uploads/uploaded_images/1649095250-Screen_Shot_2022-04-04_at_1.59.58_PM.png?twic=v1/output=image/quality=55/contain=800x800)
- An inverted yield curve occurs when short-term debt instruments have higher yields than long-term instruments of the same credit risk profile.
Typically this shows that a recession is coming.
Investors feel they will have better opportunities to invest at a future date so they will invest short term, then they want their money back.
We can see this as a problem for Real Estate, this should bring down real estate prices as people move from a long term investment horizon to a shorter term one. They believe they will want their money at a closer time frame so they can use it for other investments.
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