Recession or not
Kopin Tan had a great line in this week’s Barron’s.
“Like beer bellies and bald spots, a recession is one of those things whose precise beginning is hard to pinpoint - until the sad evidence eventually becomes hard to refute.”
We have no true way other than guess if we are actually in a recession yet, but we do know the indices are down and most of our accounts show its harsh reality. The same Barron’s article pointed out that based on data from the 1973, 1980, 1981 and 1990 recessions, “on average, the S&P 500 fell 23% from it’s peak.” That means we might only be half-way to the bottom of where we’re heading if we are indeed heading towards a recession. With that fear in the minds of many, I’m going to go with the belief that even if we don’t keep dropping another 10-13% we are not likely for a massive […]
Original post by Alex Fotopoulos