Why the Inverted Yield Curve May Not Mean a Recession

TheStreet breaks down why investors shouldn't panic just yet about the inverted yield curve.
Publish date:

Don't panic. 

Jim Cramer's Action Alerts Plus team weighed in on the inverted yield curve in their note to members on Wednesday, Dec. 6.

"As we recount [Tuesday's] timeline to better understand the mechanics of the selloff, the opening of the session didn't start off as ugly as where it closed. But what occurred as the day progressed was an acceleration in selling, driven by uncertainty to what was exactly accomplished in trade at the G20 summit, and perhaps more notably, the algorithmic footrace that sold equities in advance of an inverted yield curve," wrote AAP. 

Real Money reporter Kevin Curran and TheStreet's London Bureau Chief, Martin Baccardax, weighed in on the inverted yield curve.

Citing a report from the San Francisco Federal Reserve, Baccardax said that an inverted yield curve may not always mean a recession is on the horizon.  

You can listen to the full podcast here.