Recession On the Horizon?

In less than a fortnight in March, the U.S. stock market experienced four epic blowouts with sharp falls triggering circuit breakers that temporarily helped prevent a further plunge. The so-called “Trump boom” in the wake of Donald Trump assuming office as U.S. president in 2017, characterized by rapid GDP growth, declining unemployment, a stable consumer price index and a bullish market, is becoming a thing of the past. Instead, a recession is looming large, as indicated by many signs.

Growing turmoil

Market panic is soaring. The mechanism that automatically stops trading when prices hit predefined levels and proved effective in coping with violent market fluctuations before has, however, failed to reverse the downward spiral despite imposing several suspensions