There are warning signs of a an imminent U.S. recession. Yesterday’s release of data showing a worldwide slump in manufacturing may be the most ominous sign yet. The U.S. manufacturing index sunk to its lowest level in 10 years.
The global economic downturn is another signal, as are the ongoing trade conflicts between the U.S. and China, and the U.S. and Europe. The financial media has also cited the inverted curve – yield on short-term bonds is higher than long-term bonds – as a potential indicator. Finally, political factors in the U.S. (impeachment, election) and U.K. (Brexit) portend a difficult path ahead for the global economy.
