Billionaire Investor Warns Americans to Buckle Up For Coming Recession As Yield Curve Inverts

Billionaire investor Jeffrey Gundlach warned of a coming recession and told Americans to “buckle up” due to the rapidly inverting U.S. Treasury yield curve.

An inverted yield curve typically signals a recession, with short-term debt paying higher interest rates than longer-term Treasuries.

The yield curve has inverted as the Fed hiked rates to combat inflation, with short-term yields now exceeding long-term yields.

Gundlach says if unemployment ticks up just a couple tenths, it will be a recession alert.

The economy has largely withstood rate hikes so far, with 2.1% GDP growth in Q2 2022, but could see struggles soon according to Gundlach.