The market's favorite recession indicator has stopped flashing red. But the Duke professor who created it told us everyone should still be prepared for the worst.

Screengrab/YouTube

• Campbell Harvey, the Duke University professor who uncovered the inverted yield curve as a recession indicator, says his model could some day give a false positive signal.
• It's something that's top of mind right now, as the curve has univerted in recent weeks.
• But Campbell argues his model isn't broken or flashing a false signal because the same conditions from prior economic downturns are also present now.
• He says that everyone should heed the indicator's latest warning as there are other signs that a downturn is coming. 
• Read more on Business Insider.

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Campbell Harvey, the Duke professor who pioneered the inverted yield curve's use as a recession signal, says his beloved model will break one day.

"I'm not naive about this — the model is very simple," Harvey, who is now a professor at Duke University's Fuqua School of Business, told Markets Insider in an interview. "There will be false signals." 

See the rest of the story at Business Insider

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