You probably saw the headline yesterday, the one where the stock market took a nosedive and there was talk of doom and gloom for our economic future.
For those that don't know, the news behind the news is the fact that the bond market saw an inverted yield curve between the 2-year and 10-year treasury bonds. This is a fancy way of saying that investors expect to make more money in the short-term than the long-term, and this opinion reflects where our economy is headed.
For the last 50 years, an inverted yield curve has signaled the start of an economic recession, and while that is a scary thing to think about (we would all rather have a booming economy), the boom/bust cycle is common in economics and can often be mild.
Of course, what is different here is that the last recession that the United States experienced was the worst recession of all time, and in many ways we are still feeling its effects, whether those are physical or merely psychological.
While I will let the financial publications debate what kind of recession we are headed into, if they even agree that a recession is looming in front of us, this news does spark some interesting conversation for the motorcycle industry. Let me explain.