Worried About a Recession? Heed This Buffett Advice to "Keep Your Head."
In 2022, the yield curve, which maps yields on U.S. Treasury bonds of different maturities, became inverted, meaning short-term Treasuries had higher yields than longer-dated ones. This inversion carried on for 783 consecutive days, the longest in history.An inverted yield curve has foreshadowed many recessions throughout history, so when a recession didn't materialize after this unprecedented inversion, many investors and market strategists were surprised. But that doesn't mean the U.S. economy is out of the woods just yet. Recent economic data has started to show cracks in the economy, and uncertainty around policy under President Trump's administration has made things even murkier.It's understandable to see investors concerned about a recession. But in uncertain times, investors should always heed the advice of Warren Buffett, one of the greatest investors ever, and "keep your head."Continue reading
In 2022, the yield curve, which maps yields on U.S. Treasury bonds of different maturities, became inverted, meaning short-term Treasuries had higher yields than longer-dated ones. This inversion carried on for 783 consecutive days, the longest in history.
An inverted yield curve has foreshadowed many recessions throughout history, so when a recession didn't materialize after this unprecedented inversion, many investors and market strategists were surprised. But that doesn't mean the U.S. economy is out of the woods just yet. Recent economic data has started to show cracks in the economy, and uncertainty around policy under President Trump's administration has made things even murkier.
It's understandable to see investors concerned about a recession. But in uncertain times, investors should always heed the advice of Warren Buffett, one of the greatest investors ever, and "keep your head."
