With the recent flattening of the yield curve, investors are beginning to get flashbacks to 2018 when the “inverted yield curve” was stamped across every financial rag. It is a legitimate pause point, as almost every recession has been predated by an inverted yield curve. It is crucial to follow up this up with the fact that not every yield curve inversion has actually led to a recession. In an analogy by Bespoke, “it is kind of like the square-rectangular phenomenon whereas in a square is always a rectangle, but a rectangle isn’t always a square.”