Markets see ‘settling of nerves’ after dramatic drop, but recession talk is ‘brutally devastating’ for gov ...

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Markets see ‘settling of nerves’ after dramatic drop, but recession talk is ‘brutally devastating’ for gov ...
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The Hill Times

Investors’ nerves are beginning to settle after a rocky few days for markets in Canada and around the world, but the word “recession” creeping into the news is never a welcome sign for governments approaching an election, says pollster Nik Nanos. “A recession in the lead up or during an election campaign can be brutally devastating for any incumbent government,” said Nanos.

“The good news about markets is that they're extraordinarily efficient at correcting market mistakes,” he said. Lee suggested that markets around the world overreacted to worse than expected American employment numbers. He also said the U.S. Federal Reserve made an error by being “too cautions” and not beginning its rate cuts sooner.

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