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Strategy Report

There Won’t Be A Recession Until More People Are Convinced That There Won’t Be A Recession

by Peter Berezin, Chief Economist & Head of CoreMacro  

Ironically, increased confidence that the economy can withstand higher bond yields may be necessary to lift yields to a level that is actually detrimental to growth. Thus, until more investors are convinced that a recession will be averted, a recession will be averted. Remain tactically bullish on stocks for now. A more defensive posture will likely be necessary later this year.

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