Navigating Economic Volatility

This chapter examines current perceptions of the economy, particularly the unsettling belief among some policymakers that a recession might be acceptable. It highlights evolving market behaviors, the unpredictability of earnings, and the impact of tariffs and bond market fluctuations on investor sentiment. The discussion also delves into the complexities of U.S.-China trade relations, emphasizing the strategic implications of China's financial assets and military posture.