Recession? Not!

The Fed won't let it happen. That means there are bargains in junk bonds and cyclical stocks

Wall Street swings to extremes in a flash. For years portfolio managers have worried about the spectre of runaway inflation, as employment and incomes threatened to power into sixth gear. Now, after a summer of turbulence, they have become convinced that the economy won't weather the quick downshift. They are jettisoning the stocks and bonds of any companies that could stumble if the decade-old expansion turns to recession. But what happens if that severe slowdown doesn't hit? What if the Fed won't let it happen and moves aggressively to cut rates? Then Wall Street will have created the same sort of...

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