4 ms·
> Like if you could predict any up/down turns you know when to start buying/shorting stocks But the stock market doesn't always go down in a recession. And vic
by dragontamer 4y ago
> Like if you could predict any up/down turns you know when to start buying/shorting stocks
But the stock market doesn't always go down in a recession. And vice versa, a recession may happen, but the stock market may be fine. Ex: the recession of 1990 barely budged the stock market. While the Stock Market Crash of 1962 had nothing to do with the economy.
> Or even if you're a bank maybe don't lend out a ton of money at say 2% when next month you can lend at 5%.
But that's speculation upon the Fed Rate, which isn't about recessions at all. For example, the Fed Rate increased in from 0% in 2015 to 2% in 2019. Or from 1% in 2004 through 5% in 2006.