Markets are taking a breather after the recent wobbles, but the threat board has never looked, well, more threatening! Relax. Go see Guys and Dolls instead and treat yourself to a great night out.. tomorrow it will be miserable again!
The Fed tries to be dovish to calm market fears, but banking fears and inflationary threats on the economy may lead us somewhere new: A Stagflationary Bust!
I’ve no idea what might happen in 2023, but I don’t think its going to be as bad as some expect, but neither will it be as rewarding as others predict. Its likely to be another year of trading on what the mood is, what the numbers mean, and hoping to call it right. Hope, as they say, is only a strategy when you simply don’t know!
Halloween is a great time to be scared about markets. They are inconsistent, confused and uncertain, but the reality is even rising interest rates, inflation and trade wars sort themselves out - eventually. The real danger is how much worse bad politics and make a scary situation absolutely frightful.
Well, that was a fun week… but the UK’s travails are the tip of the iceberg of market pain facing the global economy. More political, geopolitical, liquidity and leverage driven crises are coming as markets reverse out the QE era. Don’t Panic!
Risk does not disappear. It hides in plain sight – as the investment industry will increasingly discover as crises mounts. Fortunately, there are SOB’s who have seen it before and are too aged to panic…
Global Markets have nosedived – the UK’s confidence crisis is one trigger alongside rising recession risks, crashing consumer spending and host of indications we ain’t near done on higher interest rates as inflation becomes embedded into economies and dollar strength continues unabated.
As London grieves we’re not paying much attention to politics and markets – but we should. The outlook is deteriorating. Confidence is declining and will likely get worse if the new government’s lack of awareness and sensitivity continues.
There is nothing like a dead cat bounce to cheer up the already doomed, but the real issues are inflation and dollar strength. Both can be addressed, and the treatment will hurt. Smile and get used to it.
