Ever been so happy it makes you sad? Ever been so distraught it makes you smile? Humanity is complicated, which makes markets tough to read as well.

Stocks are flirting with levels that delineate a depressed market. The mood is gloomy and the risk of recession is real, but are investors pricing in too much bad news?

Central bankers have spent years focussing their efforts on fighting deflation. Now that long-dormant inflation is back, they have to stop it from bedding in while avoiding sending the economy into recession.