2min chapter

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Will The Fed Get Their Soft Landing? | Weekly Round Up

Forward Guidance

CHAPTER

The Effect of Mean Reversion on the Markets

There's always going to be some amount of mean reversion after a horrendous year like last year. The leading economic indicators have sharply turned down. They're almost always followed by a turned down and coincident economic indicators. Going back to 1959 has there ever been a steep fall in the red line that wasn't followed by a recession, which is shown as a light blue column? I don't see any.

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