The Perfect Recession Predictor Part 3

[WITH CODE] A multi-part series exploring the predictive power of various recession indicators through the findings of academic research

Hello!

This is the third post in the “Perfect” Recession Predictor series. In this post, we’ll explore future market returns following inversions in the “perfect” forward spread, as well as returns after certain economic conditions.

I’ve also updated the Python script from the previous post to include the charts and figures featured here.

Let’s get into it.