In brief from the analysts at Deutsche Bank:
On our methodology, there have now been 60 corrections from this point including this current one.
- when a correction started, 12% of the time a recession had already started.
- 32% of the time one was coming within the next 12 months
- and on 56% of occasions no recession started around or within a year of the correction starting.
So, a correction is 44% of the time associated with a recession and 56% not.
This article was written by Eamonn Sheridan at www.forexlive.com.