When the yield between the 10-year and 2-year US treasury inverts, a recession is months away.
This chart, showing the difference between the yield (or spread), shows recessions in grey:
https://journal.firsttuesday.us/using-the-yield-spread-to-fo...
Notice how even getting close to zero spread can sometimes be followed by a recession. But a negative spread always does.
Point to consider is the effect of Quantitative Easing (QE). Here, the Fed buys long-term treasuries such as 10-years. This makes long-term rates appear lower than they would otherwise be.
The Fed only slightly unwound this policy, meaning it still holds most of the long-term bonds it bought to fix the 2008/2009 crisis.
The net effect is that the Fed could be triggering an early recession warning here.
Regardless, combining this leading indicator with others such as transportation weakness, manufacturing slowdowns, and other economies tipping into recession (despite the loosest central bank policies in modern memory) leads to only one conclusion.
Prepare for the inevitable recession. It's not different this time.
Edit: one way to play this as an investor is to buy long-term treasuries. The idea being that as interest rates fall, the value of these assets increases (bond prices move inversely with interest rates). Go as long out on the yield curve as you can. Then when the Fed inevitably rides to the rescue, begin to unwind and capture the capital gains. Or not. Instead, just continue to receive above-market rate interest payments. There's risk here because there's no way to know how low long-term rates will fall before reversing course (and eroding any capital gains you might have picked up).