After more than a year of pessimism and recession predictions, many leading minds on Wall Street now believe a “soft landing” for the U.S. economy—where inflation fades without the need for a job-killing recession—is achievable.
Year-over-year inflation dropped from a four-decade high around 9% a year ago to just 3% in June. And the S&P 500 is now up roughly 18% year-to-date. “The market has been partying like it's 1999,” Deutsche Bank strategist Jim Reid wrote in a Friday note, arguing the rally is “showing no sign of letting up” amid investors’ “growing hopes of a soft landing.”
