The Expected 2023 Recession May Not Materialize. That Could Be a Problem for Tech Stocks
Calls for a recession in 2023 are now deafening, with not only many economists and experts projecting one, but lots of data and other economic indicators are telling investors to expect one as well.
The interesting thing is that a recession may not be so bad for the market, especially when you think about the tech sector, which struggled immensely in 2022. That's because a recession might further slow the high consumer prices that have come with some of the highest levels of inflation seen in about four decades.
It also might prompt the Federal Reserve to cut interest rates if the agency feels the economy slows too much and needs to be stimulated. This would create more of a risk-on environment for stocks, especially in the tech sector. But the market may be getting ahead of itself here, which could end poorly for tech stocks. Here's why.
Source Fool.com
