Soft-landing talk can foreshadow recessions — here are red flags still warning of a downturn, Deutsche Bank says

• Talk of a soft landing tends to precede a recession, Deutsche Bank said in a note.
• A number of indicators still signal that a recession is possible, analysts warned.
• "History suggests we're still relatively early in the lag of monetary policy."

Talk of a soft landing has been heating up recently, but history shows such trends have also preceded a recession, Deutsche Bank said in a Monday note. 

Lower inflation, strong employment numbers, and signs of a Fed pivot to rate cuts this year have driven the  narrative, the note said, pointing to surging mentions of "soft landing" in news Bloomberg articles. But similar surges took place before downturns in the early 1990s, early 2000s, and 2008.

"Everything points to a soft landing except history," analysts led by Jim Reid wrote, listing an array of indicators are still flashing red on the economy.