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Inflation is at a 40-year high and the Federal Reserve is aggressively hiking interest rates. Economic growth is slowing and, and so is the job market. Cracks are forming in the home-building and home-buying markets as mortgage rates have surged. Consumer sentiment has plunged. No wonder stocks are in bear territory.
Alongside the slow, steady drip of sour economic data, investors have fallen into a foul mood. CNN Business' Fear & Greed index has been stuck in "Fear" territory for months. But the anticipation of pain is often worse than reality, and the stock market is hoping someone will just rip the Band-Aid off, and declare a recession already.
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The longer we talk about a recession, the more likely it is that the economy will continue to ache, said Ritholtz Wealth CEO Josh Brown. Recession fears themselves lead to more pullback. Consumer and investor psychology impacts the economy and we can "talk ourselves into a recession," he wrote in a note.
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"If enough people believe it's time to rein in their spending -- and then act on that belief -- it becomes a self-fulfilling prophecy," said Brown.
Recessions are inevitable, they're a part of every business cycle. Recessions will happen, and no amount of predicting and prognosticating can prevent them.
Inflation is at a 40-year high and the Federal Reserve is aggressively hiking interest rates. Economic growth is slowing and, and so is the job market. Cracks are forming in the home-building and home-buying markets as mortgage rates have surged. Consumer sentiment has plunged. No wonder stocks are in bear territory.
Alongside the slow, steady drip of sour economic data, investors have fallen into a foul mood. CNN Business' Fear & Greed index has been stuck in "Fear" territory for months. But the anticipation of pain is often worse than reality, and the stock market is hoping someone will just rip the Band-Aid off, and declare a recession already.
*
The longer we talk about a recession, the more likely it is that the economy will continue to ache, said Ritholtz Wealth CEO Josh Brown. Recession fears themselves lead to more pullback. Consumer and investor psychology impacts the economy and we can "talk ourselves into a recession," he wrote in a note.
*
"If enough people believe it's time to rein in their spending -- and then act on that belief -- it becomes a self-fulfilling prophecy," said Brown.
Recessions are inevitable, they're a part of every business cycle. Recessions will happen, and no amount of predicting and prognosticating can prevent them.
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