Inverted Yield Curve: What It Means for a Recession

An inverted yield curve happens when short-term interest rates are higher than long-term rates, and it gets a lot of attention on financial news as a potential warning sign for the economy. In this episode, Ryan explains what inversion actually means, defines a recession as two consecutive quarters of declining GDP, and puts the frequency in context: the US has experienced 12 recessions since World War II, roughly one every six and a half years.The main takeaway is that the yield curve is one data point, not a reliable predictor. Ryan cautions against letting any single indicator drive big investment decisions, and notes that investors who stayed invested through all 12 of those recessions still came out well ahead. If you heard about an inverted yield curve in the news and wondered what it actually means for your portfolio, this episode gives you a grounded, calm answer.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!