We should not forget that this end of cycle is completely different

We often hear the idea that a deterioration in financial markets (falling equity prices, widening credit spreads) is inevitable since we are reaching the end of the cycle in the United States and the euro zone In the past, at the end of an expansion period, but before a recession, we saw: A deterioration in financial markets; Falling corporate profitability and rising private sector debt levels as a result of high interest rates. But we should not forget that this end of cycle is completely different from those in the past: Interest rates are very low relative to growth; Corporate profitability is strong; The private sector debt ratio has not increased; and all this is obviously positive for financial markets .