That is what I think we may see. There is a saying that he who lives by the crystal ball is destined to eat ground glass. Let's talk about the nature of the financial bubble that is bursting. Higher earnings raise stock prices. Higher stock prices lead to the wealth effect, which in turn leads to higher rates of consumption and higher rates of investment.
Higher investment raises profitability, which causes stock prices to rise.
That process is so self-reinforcing that it creates an exaggerated condition that is not sustainable. And when it ceases to be sustained, growth expectations become disappointing or there is a tightening of monetary policy or something pricks that bubble, then there's a reversal of that cycle. Earnings disappoint and stock prices go down. Then lower stock prices adversely affect consumption and investment rates, and profits disappoint. Consumption goes down, and credit spreads blow out.