The Bipolar Economy

By John Mauldin – Mauldin Economics

Extreme mood swings are characteristic of a psychiatric condition called bipolar disorder. Patients can cycle between euphoria and depression. This is difficult because we all need balance to live normal lives. We spend most of our time in the muddle-through zone between the extremes.

Living with a bipolar person is difficult. Living in a bipolar economy is hard, too. Last year saw wild swings in attitudes about the economy and financial markets. The year opened on a high note, quickly stumbled when the Chinese DeepSeek AI model questioned the Mag-7 prospects, recovered from that, then fell again with the Liberation Day tariff announcements, came back again, then went through several more cycles. Not a bad year overall, but it was a rough ride at times.