Is a zombie recession coming? By that, I mean that renewed fears of a "hard landing" recession have emerged from the grave and are walking among us. Many analysts were convinced that the U.S. economy could achieve a coveted “soft landing,” but they might be overly optimistic.
What makes some economists worry about a recession?
What’s the most reliable social media platform? Your answer probably varies from what your parents or (adult) children would say. (1)
And actually, there’s no real consensus. Many of us turn to Reddit, YouTube, or TikTok to learn about money, yet we know influencers and advertisements don’t always speak the truth. Surprisingly, that doesn’t stop us from buying in to the financial advice we find on those platforms. (1)
Markets have been more volatile lately. What’s going on?
Let’s take a quick look at the factors that are influencing markets right now.
1. The bull market narrative has shifted
For months, investors have told a “Goldilocks” story of a strong economy, tamed inflation, and interest rates that were soon to drop. However, stronger-than-expected economic data and sticky inflation have now complicated the story, and investors have become wary.
What conclusions should we draw from a high-flying first quarter?
Investors are feeling optimistic about 2024.
With the S&P 500 closing its fifth straight month of gains, it's clear that the bull market has legs. (6)
We can also see that the rally is broadening beyond a small number of technology stocks as investors build confidence in the economy. (7)
Broader confidence in company growth potential is great news for investors as it makes the rally less vulnerable to the individual fortunes of a few high-flying stocks.
