Yield Curve Inversion Signals Possible Recession, But Economy Remains Strong for Now - How to Prepare Your Finances Just in Case

The yield curve, which plots bond yields of different maturities, has inverted, signaling investors expect the Fed will cut rates due to a recession.

An inverted yield curve has preceded every recession since the 1950s, though it's not a guarantee. Recessions typically happen 6-12 months after inversion.

The economy is still strong right now despite yield curve inversion over a year ago - low unemployment, solid consumer spending, cooled inflation.

To recession-proof your finances, pay off high-interest debt, build an emergency fund, invest in resilient assets like dividend stocks and defensive sector ETFs.

It's uncertain if a recession is imminent despite ominous yield curve signal. Being financially prepared is wise even if downturn doesn't happen.