Saturday, June 13, 2020

Feels Like a Worse Downturn is Coming

The next market downturn will likely be more serious, longer duration and deeper than the recent downturn, which was self induced.  Soon, the market will recognize more businesses than expected will fail, more jobs will not be coming back, pensions will be cut, state and local governments will shrink.  Other negative factors include civil unrest and a COVID-19 resurgence.

This feels a lot like 2008, where the market ignored many issues, until Lehman Brothers failed.   I suspect there will be another Lehman moment later in 2020.

For more on Reflections and Musings, check back Saturdays for a new segment.

This is not financial advice. Please consult a professional advisor.

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