Do Indicators Point To Potential Further Stock Market Declines?

2025-04-16 03:35:00 ET

Summary

• The stock market has experienced significant turbulence recently. Is the worst behind us? Or could it get a lot worse before all is said and done?
• No one can say for sure, but multiple key indicators suggest there’s a lot more downside to come.
• In this article, we examine everything from the yield curve to CAPE ratios to gain a sense of where we are, and where we might be headed next.

Yield Curve Inversion: A Recessionary Harbinger

First up is what some believe to be the best recession indicator of all time. The yield curve inverting, and then un-inverting, has historically been a nearly perfect recession indicator. With the yield curve snapping back to normal after being inverted for so long in 2024, many investors brace for a recession to begin in 2025.

Even the Fed has increased its forecast for a recession . This is definitely something you want to keep an eye on....

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