Theres a 70% chance of recession in the next six months, new study from MIT and State Street finds

  • A new study from the MIT Sloan School of Management and State Street Associate says there’s a 70% chance that a recession will occur in the next six months.
  • The researches used a scientific approach initially developed to measure human skulls to determine how the relationship of four factors compares to prior recessions.
  • The index currently stands at 76%. Looking at data back to 1916, the researchers found that once the index topped 70%, the likelihood of a recession rose to 70%.

There’s a 70% chance that a recession will hit in the next six months, according to new research from the MIT Sloan School of Management and State Street Associates.

The researchers created an index comprised of four factors and then used the Mahalanobis distance — a measure initially used to analyze human skulls — to determine how current market conditions compare to prior recessions.

Source: https://www.cnbc.com/2020/02/05/70percent-chance-of-recession-in-next-six-months-study-from-mit-and-state-street-finds.html

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