Updated: July 7, 2017
Stop me if you’ve heard this one before: “There’s a recession every seven years.”
It’s the kind of financial folk wisdom that sounds right but is, in fact, all wrong. But that doesn’t stop influential people from touting it as truth.
Morgan Stanley, for example, was warning investors that the seven-year cycle was a serious risk back in 2015. And they were wrong.
The world’s GDP rose 3.2% in 2015 and 3.1% in 2016, according to the International Monetary Fund. The US didn’t do too badly, either, growing 2.6% and 1.6% in those years. So far, 2% looks like an easy target for 2017.… Read more