Biggest concern is the market sell-off becoming a 'self-fulfilling prophecy,' research firm warns

From cnbc.com

Sustained market declines in the wake of the recent global sell-off could become a “self-fulfilling prophecy” that eventually leads to a recession, Morningstar DBRS analysts warned. “In our view, the direct impact of these steep market declines is limited,” they said in a note published Monday. “Our biggest concern is that the market sell-off becomes a self-fulfilling prophecy causing corporate CEOs to cut back on investments and consumers to pull back on spending leading to further cuts and a recession,” the analysts added. Global markets began to tumble at the end of last week, with Japan’s Nikkei 225 ... (full story)