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

Yeah consumer sentiment is a factor. But so are a lot of other factors.

The yield curve today in the US is concerning for sure, but I think the media is just doing what its always done – capitalizing on fear. The economy is still pretty strong