Friday , October 7 2022

Markets caught in the turn of recession


The turbulence in stock markets over the last two weeks shows that the scenario has changed. "No more pity, markets are now integrating the fact that we are stepping not toward stabilizing global growth, but towards a strong slowdown, even a recession," says Philippe Schindler of the consulting firm. in investment in Heravest.

It is difficult, however, to foresee the extent or the nature, because the situation is unprecedented. "We have no basis for comparison because we have never experienced negative rates in the past," notes Arnaud Masset of Swissquote, referring to central bank's accommodative policies. "How do we manage the consequences? Will it actually work in the next recession?" Wonders Michel Juvet, a partner with Geneva-based bank Bordier & Cie. "We will have to learn in the process," says Samy Chaar, chief economist Lombard Odier.

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