Hard Landing, Soft Landing, or No Landing at All?

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Equity and bond markets are often impacted by global events and the health and direction of the economy. This has been increasingly relevant over the last few years given the global health pandemic, war in Ukraine, and the highest U.S. inflation in more than 40 years. Recent failures of Silicon Valley Bank and Credit Suisse have contributed to an understandable dip in consumer sentiment. This shaken confidence can lead to increased concerns and fears about what’s to come and cause a ripple effect in investment markets.

While inflation in the U.S. has slowed relative to a few months ago, fears of sustained higher interest rates and, ultimately, a recession are still on the minds of many. Consumer sentiment is near an all-time low. But it is not all negatives ahead, and where markets go from here depends on a few outcomes.