Recovery for stocks but re-inversion for bonds US Stocks had a good week of recovery, led by tech-heavy Nasdaq, which is up 5%. Fears about a recession continue to push Treasury yields down and led to a re-inversion of the yield curve. As we wrote before when 2 year yields were briefly higher than 10 year yields earlier this year, yield curve inversions tend to precede recessions but there have been false positives.  Image Credit: Edward Jones Shorter and shallower recessions tend to happen when there are smaller increases in unemployment – this makes sense intuitively too.  US recessions where the unemployment rate rose by 2.5% were the most mild, with US GDP falling less than 1.5%.  Given the strength of the labour market and the state of household and corporate balance sheets, there is reason to believe that if a recession were to emerge, it could be...