BVI Funds – A Smart Bet In Uncertain Times

News outlets, including The Guardian and CNBC, were reporting and market watchers were opining in early 2019 that a slowing world economy forebodes a major global economic shift—possibly another recession. By mid-August, the concern found renewed attention when analysts pointed to an inverted yield curve in the United States Government bond market as a historical precursor to a recession.

According to Credit Suisse, a recession has occurred, on average, 22 months following such an inversion in past cycles. Whether the inverted yield curve is a reliable indicator of an imminent recession is yet to be known; however, activity in the bond market does suggest that investors are looking for alternatives to standard equity investments.