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Actually, some investors do want a recession. You start by taking a hedge position that pays off massively in a downturn, and then try to bring it about by spre
by tlb 7y ago
Actually, some investors do want a recession. You start by taking a hedge position that pays off massively in a downturn, and then try to bring it about by spreading doom and gloom.
No investor is big enough to cause a recession all by themselves. Or maybe some sovereign funds are, but they play by rules that don't allow manipulation. But when enough large investors think a recession might be coming, and they all take short positions and try to bring it about, it is more likely to happen.