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Bear market to the rescue

Financial Times LogoFinancial Times1w ago

Bear market to the rescue

Quick Summary

Intuitively, households are simply discounting the same stream of profits at a different rate; so it is not obvious that they are truly better off and should increase their consumption.

Lower stock, bond and crypto prices make people feel poorer, so they spend less, making the economy smaller than it would otherwise be.

Sensitivity of spending to loss of wealth likely depends on hard-to-measure psychological factors.


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Article Details

Author / Journalist: Robert Armstrong

Category: MarketsFinanceInvesting

Topics: Markets Wealth Spending Stock Cent Financial Profits Household Market

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-20, 05:30:42

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Reading Time: 5 minutes read

Article Length: 891 words

Coverage Area: United States

Availability: Desktop Web, Mobile Web

News ID: 1141

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About Financial Times

Financial Times Logo

Main Topics: MarketsFinanceInvesting

Official Website: ft.com

Update Frequency: 9 posts per day

Year Established: 1888

Headquarters: United States

Last Updated: 9h ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

Languages Covered: English

RSS Feed: Available (XML)

Website Security: Secure (HTTPS)

Publisher ID: #3

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