The paw of the bear and the charge of the bull

The bull has come to represent the profile of the buyer investor, always looking for actions to increase their profit. Instead, the bear refers to the selling investor, who mistrusts the market and takes advantage of downtrends to enrich himself.At this time, the economy suffers from two diseases that require two opposite remedies. The first is inflation: escalating energy and food prices erode the purchasing power of consumers, who are forced to cut back on spending. To curb inflation, central banks raise the cost of money, triggering a slowdown in the economy and driving down prices.However, the other condition is just slowing down and requires the opposite treatment. Monetary institutions should reduce interest rates so that liquidity increases and consumers spend more. Faced with this contradictory scenario, the central banks have opted to raise rates to reduce prices, although they run the risk of fueling a slowdown in activities.

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