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Every Recession Begins With a Slowdown

The Compound and Friends

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Market Dynamics and Investor Behavior

This chapter analyzes the complexities of the current stock market, particularly focusing on bear market rallies and the disconnect between corporate revenues and overall market performance. It contrasts the actions of Wall Street strategists, who have reduced their S&P 500 targets, with retail investors' record stock purchases, revealing a divide in investment psychology amid economic uncertainties. The discussion also touches on the implications of economic policy and tech investments on market sentiment, exploring how past experiences shape current investor behaviors during downturns.

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