The Economy is More than One Thing

(edited transcript) … Whatever analogy you want to use, the one I’ve heard the most is like, “the steam out of a kettle.” You know, you don’t want an explosion. You want to let a little bit of that steam out. That’s where, whether it’s market corrections, quick bear markets–we’ve seen a lot of those, here in the last few years–it could be a recession (a lot of debate whether we had one in 2022 or not, you know, technically we had two quarters of negative GDP growth), but I think the main point is we tend to think about the Great Depression or the Great Financial Crisis, and it’s very black and white–massive dichotomies. There is also kind of rolling recessions all the time. While this sector might be booming, they might be having a moment of weakness in a different sector, and great reasons for investors to stay diversified, not to be in just one thing or another because everything is going to have its moment, but it’s also important to keep in mind, especially if you’re in one of those industries that might be struggling is that industry might be having a tough time, but the overall economy, the overall market, can still be doing well. So, to your point, more of a pruning process, painful as that can be. Sometimes it’s just that natural rotation.

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The Economy is More than One Thing

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