Recession warning signs

Recession warning signs
- a y-o-y uptick in the Unemployment rate
-a y-o-y downtick in Industrial Production
-an inverted Treasury yield curve
- a sharp increase in the inflation rate
-a y-o-y downtick in the Chicago fed National Activity Index
-a y-o-y downtick in corporate earnings.

There has been an explosion in "passive indexing" that uses exchange-traded funds and indexed mutual funds. These funds now account for more than 35% of equity assets under management, according to Morningstar. When the next bear market hits, investors will do what they always do- liquidate their stock positions.

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