Inflation, Recession Or Both? Inflation, Recession Or Both? Submitted by QTR''s Fringe Finance Perhaps more than anything else, the one question that is going to determine whether or not people make money in the market in the second half of this year is whether or not bad news is once again good news. So, let’s discuss the setup: what the macro picture looks like to me, and what I see as possible outcomes going forward. Heading into the inflationary crisis that we are in, back on December 17, 2021, I wrote an article talking about why the “bad news” of inflation was simply just bad news. In other words, it couldn’t once again be a prompt for the Fed to swoop in and save markets, as they have done over the last several decades. In that article, I called the taper a non-sugar coated directional negative for markets. The day prior, CNBC led with the headline: Dow futures up nearly 200 points following Fed decision to aggressively wind down asset purchases My article ridiculed market participants, analysts and financial media for suggesting that inflation wasn’t going be a problem and that winding down asset purchases was somehow going to magically propel stocks higher.