One market expert says flashing recession signals mean 3 years of negative returns for stocks — but he has a strategy that could still make investors a killing

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Cam Harvey, partner and senior advisor at Research Affiliates, sees the heightened risk of a recession as a perfect opportunity for value investors.

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episode posted to the firm's website."And we've had seven yield-curve inversions before each of those recessions, so this is a pretty reliable leading indicator."chance over the next 12 months, saying"we are worried."Well, Harvey has crunched the numbers — and the results aren't pretty. You read that correctly: three full years of negative returns. If you calculate the total loss, it comes to more than 20% — the threshold historically used to define a bear market.But not all hope is lost — and Harvey has identified the perfect out-of-favor strategy for investors to exploit during this downtrodden period: the value factor.

 

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