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As we mentioned in our last article, we are in the midst of a credit crunch.
Central banks are engaged in unprecedented actions in an effort to stave off a financial crisis which could lead the world into a recession.
We already talked about how to trade in a recession, but what about just ahead of the recession?
After all, we don’t know if the current situation will evolve into a major recession, or there will be a quick contraction and a relatively fast rebound.
Extrapolating from Chinese data, some have argued that from the peak of cases (that is, when the spread of the coronavirus gets under control) there are about three to four weeks until the economy starts reactivating.
That has led some analysts to optimistically hope that maybe we’ll be back to “normal” before the end of the semester.
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