- Two recession indicators are currently flashing, which has some investors on edge.
- Charles Schwab offers four reasons why anxious investors should consider buying municipal bonds.
- These assets offer high credit ratings, and typically perform well at the start of a recession.
While economists remain split on whether the US is rolling toward a recession, at least two notable gauges are flashing clear-cut warnings that a downturn is imminent. For those uncomfortable with this, municipal bonds could offer some relief, Charles Schwab suggested.
The Sahm Rule says the US is in a recession when the three-month moving average in the unemployment average rate moves 0.5% from a 12-month low. This occurred in July.
businessinsider.com
by Filip De Mott
Aug 27, 2024