Short memories
Investors are increasingly convinced that the Federal Reserve will cut rates aggressively next year as inflation slows – even if the economy experiences a “soft landing”, with growth and employment holding up relatively well. We’re not so sure. Scientists have long known that we tend to carry the macroeconomic lessons learned in our youth throughout our lives. People who lived through the Great Depression remained less likely to participate in stock markets throughout their investing careers, more favourable economic conditions led the early Baby Boomers to maintain persistently higher allocations to equities, and individuals who came of age around the...