Recessions are by definition deflationary. Deleveraging events are also deflationary. A recession accompanied by deleveraging is especially deflationary.
Given the indecisiveness in the stock market lately, Deron Wagner is inclined to remain on the sidelines until a definitive, convincing move in either direction occurs.
Wednesday's price action quickly put a damper on the positive momentum the market gained on Tuesday. For the moment, it appears as if market bears are not yet ready to relinquish control of the market.
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