Periods of Pain: Shorter Than You Think
Corporations’ capacity for preserving earnings may help shorten future recessions. So, while it may make sense to plan for a potential recession, one may also want to prepare for potential subsequent recovery because periods of pain may be short lived.
Acute adversity makes time seem to stand still, but periods of deep economic pain such as recessions have become shorter. Understanding factors that have driven this trend may help investors manage fears about recessions and avoid panic selling just prior to an uptick in market sentiment.