Research.LeutholdGroup

Bear-ing Down

The market decline will almost certainly be accompanied by a recession. For months we’ve maintained that the wealth effect had become the main support of an expansion whose list of beneficiaries had been narrowing like that of stock breadth and leadership. The administration’s draconian tariffs will deserve some blame, but it’s not partisan to underscore that the expansion was on precarious footing long before the Tariff Tantrum.