Market recovery is hitting a fork in the road: Lakshman Achuthan

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The last two recessions may help determine what’s next for the recent market rally.

Economic Cycle Research Institute co-founder Lakshman Achuthan has narrowed the possible recovery paths into two scenarios: The dot.com bubble collapse and financial crisis aftermath.

Achuthan builds his case in a special S&P 500 chart showing performance during the 2009 to 2010 and 2001 to 2003 recoveries.

“If we looked at the last two business cycle recoveries, I think everybody is hoping that it’s something like coming out of ’09 into ’10,”┬áthe economic forecaster told CNBC’s “Trading Nation” on Wednesday. “The economy kept recovering for the

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Recession depth will be much worse than 2007-2009: Lakshman Achuthan

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Economic forecaster Lakshman Achuthan warns the coronavirus pandemic is hitting the U.S. economy harder than the financial crisis.

“This is a brutal recession,” he told CNBC’s “Trading Nation” on Wednesday. “This recession is extraordinarily deep. Already, you’ve got 22 million people filing for jobless claims compared to 8.7 million jobs lost during the Great Recession.”

Achuthan, who’s co-founder of the Economic Cycle Research Institute, builds his case in a special diagram measuring recession severity. It includes his three D’s: Depth, diffusion and duration.

“The diffusion of weakness across the economy… spreads like wildfire,” he added. “This recession is certainly very

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