Market Moves Suggest a Recession Is Unavoidable
This opinion from Bloomberg's Jared Dillian makes these kinds of assertions:
- There are signs of market pessimism all around. On Wall Street, people don't seem to be eager to buy this stock market dip, fearing that another recession is around the corner. Even the Fed has signaled that "a pause in interest rate hikes may be coming."
- The inversion of the yield curve is the strongest signal yet, because "everyone knows that inverted yield curves are the most reliable recession indicators." At least this time, "ample opportunity is being given to cut exposure to risk."
- The inevitable recession isn't necessarily something that we need to fear. Down cycles in the economy are necessary because they have "cleansing properties, helping to right the wrong of billions of dollars allocated to bad businesses."
What do you think of this point of view?
Vote to see how others feel.