The stock market's sharp drop might have already priced in a 'shallow' recession

Published On Mar 12, 2025, 5:17 AM

The S&P 500 has dropped about 10% from its peak, leading many to speculate that this decline has already factored in a potential shallow recession. Despite the market's downturn, most economists do not predict an actual recession this year, suggesting that the current sell-off could present a buying opportunity for investors. Notably, experts recommend considering investment in the tech sector, which has seen a decline and thus lower valuations, as well as financial stocks, which have less exposure to tariffs. However, ongoing uncertainties around tariffs and economic policies complicate the outlook.