https://www.cnbc.com/2023/04/21/a-recession-is-coming-and-equity-markets-may-incur-some-pain-strategist-says.html
As a recession is coming our way, economists are saying that the stock markets will be hit quite hard. With people having high hopes that it won't be as bad as they think, economists are here to spread the news that it probably will be bad, and worse than we think. They said "economic data suggests a recession is coming, according to the chief executive of financial advisory firm Longview Economics, and investors may need to prepare for some pain in the stock market." The Leading Economic Index fell by 1.2%, which is the lowest we have seen since 2020. It is not looking good, but another thing they made sure to add to this article was that they have seen strength in the labor market, as well as consumer spending.
Why do you think there is continued faith in the stock market despite warnings from economists?
ReplyDeleteThis is somewhat different from an article I read that was downplaying the upcoming recession. It could be that although the recession is expected to be brief there will still be a significant drop in the stock market in that period of time.
ReplyDeleteThe news from these different articles will make people react to what they here so if they think recession will be bad and stocks are going to crash then many people will start to pull their stocks and pull money out the bank which will further everything.
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