Part 5/6:
Given the historical parallels drawn between today’s economy and past events like the Volcker era, there is an expectation of a major recovery once market conditions shift. The pivotal question for investors, therefore, revolves around timing. Based on the historical performance after extended periods below the PMI threshold, an expansive market rally could be in the works, particularly affecting risk assets such as crypto.
In light of these patterns, investors are encouraged to remain vigilant, understanding the macroeconomic indicators that could signal shifts in the cycle, allowing them to make informed decisions regarding their portfolios.