If a prediction of a recession causes the market to crash, can it be said that the prediction itself is part of the cause of the recession? Like a self-fulfilling prophecy?

Question

If a prediction of a recession causes the market to crash, can it be said that the prediction itself is part of the cause of the recession? Like a self-fulfilling prophecy?

In: Economics

Answer 1

Only because a handful of “experts” will ALWAYS predict a recession. It might not be the same experts every time, but there will always be a few who predict it, and law of probability states eventually they’ll be right.