Financial Glossary
Yield Curve
The difference between long- and short-term bond interest rates. An inversion may signal a recession ahead.
Explanation
10Y − 2Y spread. A yield-curve inversion (negative spread) is a historically reliable recession indicator within 12-18 months.
Technical detail
The model uses yield-curve slope as a macro feature. On inversion, the ensemble aggressively reduces equity exposure.
See also
Educational content. Not investment advice. Past results do not guarantee future returns.