Financial pundits keep saying that the stock market cannot maintain a rally until the Federal Reserve “pivots” from a policy of raising interest rates to a policy of lowering interest rates. They are, as usual, wrong, but there is something bigger afoot here: This modern idea that we must be on one extreme or the other.
As our economy slows and inflation remains stubbornly high, one must wonder if we will ever learn our lessons. We have been here before and we know what causes this, yet here we are once more. We did not learn the lesson of the 1970s; but why?
