Short And Shallow?
Short and shallow seems to be the growing expectation surrounding any 2023 recession, if it ever even arrives at all. The US economy is stronger than most people expected and inflation is clearly stabilizing. This is the “immaculate disinflation” that many optimists talked about a year ago, with an economy simply showing signs of normalizing after a pandemic. Under this theory, the Federal Reserve may just get to have its cake and eat it, too.
At the beginning of the year, stocks were priced for a meaningful economic slowdown and an earnings drop that never in fact happened. This reality…
The skinny
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