Is a Bull Market Coming or a Recession? Maybe Both
Despite a banking crisis earlier this year and high inflation, the S 500 index has rallied from its cyclical low in October and is now up more than 22% since that time. From a technical standpoint, many would say that we've entered a bull market.
But on the other side of the spectrum, many believe the U.S. economy is heading for a recession or may already have entered a recession and we just don't know it yet (they're typically formally announced after they start). Can both be true? It's possible. Let me explain.
Since the start of 2020, the market has been extremely volatile. Stocks surged in 2021 due to low interest rates, quantitative monetary easing, and stimulus from the federal government that led to frothy markets.
Source Fool.com
