Why the uncertain markets are actually a good thing: Allison Schrager

Why the uncertain markets are actually a good thing: Allison Schrager

In an era once marked by financial certainties, the pandemic upheaval shattered expectations, ushering in higher inflation and fluctuating interest rates.
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In an era once marked by financial certainties, the pandemic upheaval shattered expectations, ushering in higher inflation and fluctuating interest rates. Amidst divergent forecasts on 10-year bond yields and inflation rates, uncertainty grips the economy. While this divergence poses risks, it also signals a healthier acceptance of unpredictability. Acknowledging the fallibility of consensus forecasts prevents complacency and fosters a more nuanced, risk-aware environment. As economic variables regain normalcy, the real danger may lie in a growing consensus, veering towards potential pitfalls.

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By Allison Schrager

When it comes to financial markets, nothing is certain. For much of the last few decades, however, it was easy to convince yourself otherwise: Interest rates mostly went in one direction, down, and high inflation was a thing of the past.

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