Today I want to review the 5 key reasons to still be bearish in 2023. That starts by appreciating that the recessionary storm clouds are darkening over the first half of 2023. And if a recession is in the air, it creates this very negative vicious cycle:
Recession > Job Loss > Lower Income > Lower Spending > Lower Corporate Profits > Lower Share Prices > Rinse & Repeat
The “Rinse & Repeat” part explains why this can be such a vicious cycle. Because the most oft used cure for lower corporate profits is to lower expenses. And that typically means deeper job loss which revs up the cycle again leading to a weaker and weaker economy (and lower and lower stock prices).
With that backdrop firmly in place, let’s now review the 5 key reasons that point to recession and bear market forming in early 2023…
This post originally appeared at StockNews.com.