Financial media loves to make connections that’ll predict the next great recession. Are inverted yield curves a bad omen or just a coincidence?

Summary: News headlines are stoking fear by saying that an inverted yield curves predicts a recession within two years. Two years is an absurdly long time in the financial world. The factors that caused previous yield curve inversions not causing the yield curve inversion we are seeing today. No one doubts the global slowdown is occurring, but corporations are finding ways to adjust and do business.