Good morning Readers!
Thanks to last week’s volatility, this week’s choppy price action reflects the return of the infamous R-word (recession) to the global macro conversation.
This market turmoil comes after the Trump administration disseminating its narrative of a ‘detox period,’ wherein the economy goes through a dip as the government cuts spending and reverses the more public-sector-induced stimulative measures of the previous administration. Pair that with inconsistent trade policy (i.e., on-and-off tariffs), and you get a market that has no idea what to do—and we’re not just talking about financial markets. We’re also referring to the very businesses producing goods and services. CEOs’ current outlook on business and economic conditions has reached all-time lows, so there is a question of whether this cohort’s worry is conducive toward capital investment.
We’ll have to dive deeper into the numbers, and most importantly, prices, to see whether the economy will prevail or slip into a recession. Today’s Weekly analyzes:
Bitcoin and S&P 500 price action
Year-to-date performance across different asset classes
Our thoughts on a policy-induced recession
So, without further ado, grab a coffee, and let’s dive into TBL Weekly #131.
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