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Free Lunch: Can recessions be good? - Financial Times

 

“It feels to me much like it did before the 2007-8 crisis: a lot of well-informed people are quietly talking about overvaluations, while still maintaining large exposures and privately praying for a soft landing,” says MIT’s Lucas.

Ultimately, the longer markets rise, the further they can eventually drop, and the greater any fallout may be. Deutsche research shows that when the S&P 500 has sold off notably more than 10 per cent, it has tended to coincide with a recession.

 

 

Free Lunch: Can recessions be good? - Financial Times

 

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