“Stagflation, it strikes fear into the heart of most investors”; can be a buying opportunity

 


“It’s become such a hot topic because tariffs are bad for growth and bad for inflation.”

Any potential combination of higher inflation and elevated unemployment could lead to a toxic situation where “nothing would work in a simple asset allocation,” 

Even so, “when we shake this all out, the consumer isn’t collapsing, [and] GDP isn’t collapsing,” 

It’s also important to note that corrections, defined as a pullback of at least 10% from a recent peak, can be a buying opportunity and don’t always spill over into a bear market, or a drop of at least 20%.

MarketWatch 26 March 2025

https://www.marketwatch.com/story/the-misery-index-is-creeping-higher-does-that-spell-doom-for-stocks-af60c5f4





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