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

If it were that shallow, yes. But there is a ton of real data, visible to all investors, that goes into that prediction. So in reality it is the actual data about economic performance that leads to the recession.