These are the stock sectors you want to buy when the bond market is flashing a recession signal

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The bond market is flashing a recession warning but that could bode well for certain sectors.

div > div.group > p:first-child"> On Friday, the U.S. yield curve"inverted" — meaning the yield on the 3-month Treasury rose above the yield on the 10-year note. Historically, this means a recession is on the horizon.

"Historically investors have often tried to come up with reasons for why things are different this time around and have often been proven wrong," Credit Suisse research analyst Andrew Garthwaite said in a note to clients Tuesday. Still, certain sectors do better than others in that environment. In the first three months after the inversion, insurance and industrial stocks show the strongest median out-performance. Semiconductors and consumer durables are historically the biggest laggards.

 

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More recession signals than just bonds out there

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