[throwawaymath]

"Good" and "bad" aren't nuanced enough terms for the discussion. What has happened is a classical indicator of a recession has emerged, because investors are demonstrating pessimism about long term bond yields compared to near term bond yields. This does not mean we are presently in a recession, nor does it mean we are necessarily entering one soon. But the indicator has historically correlated with recessions (consistently since 1970 if I recall correctly).

A better question for you to ask is this: what does my investment portfolio look like and when do I expect to withdraw from it? It's healthy for economies to go through credit/debt prosperity cycles, but this will be concerning for you if you (among other things) plan to withdraw a nontrivial amount of your investment fund(s) in the near future. If your employment situation is stable and you're not planning any large withdrawals, this is probably not something to immediately worry about. If you work in an industry which benefits from greater volatility, this might actually be beneficial for you.

[shostack]

>"If your employment situation is stable and you're not planning any large withdrawals, this is probably not something to immediately worry about."

This is an important note. If we do face another Black Swan event like the housing crisis, it may not be directly related to housing in the same way. As such, it signals a general "be on alert" from a risk standpoint. If you would be in serious trouble financially if you lost your job tomorrow, you may want to shore up your cash position to ensure you have a way to ride things out. If you feel relatively secure, you may want to free up some liquidity for opportunities that might present themselves. If you're about to buy a house, now might be a good time to move those funds out of the market, or consider the timing of your purchase altogether. These are just a few considerations.