I think the economy and markets are facing an extraordinary set of headwinds. These include:
1) High inflation
2) Fed raising rates to address the inflation
3) Fed actively shrinking its enormous balance sheet to address the inflation
4) Fiscal drag (We spent $4 trillion on covid - not repeatable). This will cause year-over-year drops in many GDP inputs,
5) Russia and Ukraine - If Russia settles in for a long siege of Donbas that will cost us both in sanctions and support for Ukraine
6) Europe might be thrown into recession by the cost of energy and the need to significantly increase defense spending.
7) China has locked down Shanghai. Omicron is highly transmissible. More cities to follow.
Furthermore, the "Fed Put" on the stock market is gone due to the high inflation rate. Don't expect a flood of liquidity if the stock market drops 15%.
Take this with a grain of salt as you should with any random guy prognosticating on the internet. But give it some thought.
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anytime you sanctions someone the world becomes self-destructive. Trade becomes non existent, to a degree, and it hurts. it hurts the country that puts on the sanctions. it sup-posts-hurt the the country that the sanctions are put on. but it hurts all countries.
Could someone please take his keys away...
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posts and now with his guy in office, he "takes a break". Funny how that works. I would hide too if the guy I voted for had this kind of performance.
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He really respects Women don't you know.
Link: https://www.theatlantic.com/politics/archive/2014/08/in-defense-of-naked-joe-biden/375507/