The market is behaving as if a severe recession is in the offing.
But what if it isn’t?
What if this is all about a European panic that can be solved?
Citigroup has looked at what stocks typically do after a 20% correction that don’t see a subsequent earnings collapse.
Basically, stocks will rise, by at least 20% on average, over the coming 12 months.
It could even be as high as a 40% gain.
Again, this is assuming the economy doesn’t collapse. The latest data out today is not reassuring.