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The 2 Types of Bear Markets
A reader asks: Lately, we hear the terms “soft landing” and “hard landing” regarding the Fed actions. Can you explain what these two phrases mean in market terms? A couple of months ago I looked back at every inflationary period going back to the 1940s: chart There’s a theme here. This is what I wrote at the time: Inflationary spikes don’t cause every recession but every inflationary spike has only been alleviated by a recession. Each time inflation went over 5% in short order there was a recession either right away or in short order. A hard landing would be the Fed raising interest rates so high to ... (full story)