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NEWS · Yahoo Finance · Jul 18, 2026 BEARISH

This Indicator Has Called Every Recession Over the Last 60 Years -- What It's Saying Now

An economic indicator that has predicted every recession over the last 60 years is now signaling a potential slowdown in the economy.

What it means

An economic indicator that has predicted every recession over the last 60 years is now signaling a potential slowdown in the economy. This means that the indicator is showing warning signs that could impact investment decisions. It's essential to pay attention to these signals to avoid potential losses.

Possible consequences

The consequences of a recession could be a decrease in stock values, an increase in unemployment, and a reduction in consumer spending. This could have a negative impact on sectors that are highly sensitive to the economy, such as the real estate and automotive sectors. Investors' portfolios could suffer losses if they are not diversified.

What you can do

It's advisable to diversify your portfolio and monitor the economy's performance to avoid potential losses. It's also essential to maintain a long-term perspective and not make hasty decisions based on short-term signals.

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Explanation generated by InsiderFlow's AI for informational purposes: not financial advice.