Don't Fear a Potential Recession; Embrace It
Comment of the Day

January 14 2019

Commentary by Eoin Treacy

Don't Fear a Potential Recession; Embrace It

Thanks to a subscriber for this report from Morgan Stanley which may be of interest. Here is a section:

Eoin Treacy's view

A link to this report is posted in the Subscriber's Area. 

The markets have quickly turned from giving credence to the Fed’s prognostication that they would raise rates as many as two times this year to pricing in none and a cut in 2020. However, it is also worth considering that for the moment, at least, the market is pricing in one cut not a succession of cuts. The extent of the decline seen to date, therefore, has been to price out any net positive from the tax cuts; netting off trade frictions now to the earlier, and possibly temporary, bump to consumer demand.

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