Many look very closely at the yield curve to find clues of a potential recession.
Credit markets/high yield bond spreads are perhaps even better predictors of recessions. Oddly, credit markets have been more resilient than stocks and government bonds and point to continued economic growth in the U.S.
Watch our colleague Martin Fridson in this 10 minutes clip of a recent Rosenberg Research Webinar (famous strategist David Rosenberg's consulting firm) discuss credit markets, the Federal Reserve actions, and investment strategies for income investors in case a recession indeed ensues in the next quarters.