Major U.S. stock indexes just finished their worst weeks since March and swung Monday as investors grew increasingly anxious about trade talks with China and the U.K.’s exit from the European Union. Investors also have been closely watching the bond market for clues on the health of the economy, with one section of the widely watched yield curve—the difference between two-year and five-year Treasury yields—inverting last week. The measure has historically been an accurate predictor of U.S. recessions, with an inverted yield curve preceding every economic downturn since the 1950s. In another sign of fear, near-term futures contracts tied to the VIX have jumped above those expiring in later months—a signal that investors are bracing for extreme swings in the next couple of weeks. https://www.wsj.com/articles/fear-g...ff-is-different-1544472242?mod=trending_now_2
Larry Swedroe in his article Swedroe: Inaccurate Indicator talks about inverted yield curve. There has never been a solid connection between exchange returns and yield curve inversions. Main concern - we should not let data (that everyone has access to) make us go astray from a well thoroughly considered arrangement.