Investors began the New Year trying to shake off recent market swings. December 2018 brought about the biggest single-day pullback and single-day point gain ever witnessed. As the calendars turned, investors were greeted with a government shutdown coupled with continued trade fights. The markets have done their best to shake off these political risks; however, there have been increased talks amongst the investment community about the recent uncertainty. Some economists look towards the yield curve as a measure of economic health; as the curve inverts, there is a greater risk of a recession. Currently, the yield curve is flattening, however many economic indicators continue to point towards a healthy and robust economy.
The video above explains the yield curve and why some economists look towards this as a means of predicting the next recession.