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Recession won’t come until at least 2021, Bank of America predicts

May 8, 2018

Via: CNBC

Bank of America’s investment arm has offered some soothing words to investors fretting about an imminent meltdown in global equities and a resulting slowdown.

The investment community have been busy watching the recent trend in bond yields this year, with many commentators predicting that the current economic cycle could be reaching a peak. The “flattening of the yield curve” — where short-term interest rates get closer to the long-term rates — has sparked some fears that a recession is around the corner. In a normal functioning economy, short-term lending has fewer risks — the underlying thought is that you can more easily predict what’s happening tomorrow rather next month.

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