As signs of US recession grow, should global investors be worried?

Do not let talk of yield curve inversion and impending recession spook you

Last week the yield curve inverted in the US for a while, with 10-year government bonds offering a lower yield than two-year bonds. Inversion of the yield curve is widely regarded as a lead indicator of recession. On August 14, when this happened, the Dow Jones Industrial Average (DJIA) tanked 800.49 points. In India, financial advisors recommend US funds as the first category of international funds to investors wishing to diversify geographically. Many investors who hold US funds are getting jittery due to all the ongoing talk of recession.

Experts say US funds should be a long-term allocation in investors’