JPMorgan Chase is predicting that 2022 will bring an end to the pandemic and a full global economic recovery. The company’s chief market strategist says broad population immunity will help play a role in doing so. However, not everyone agrees with the assessment. Billionaire “Bond King” Jeffrey Gundlach sees inflation remaining above 4%. Kitco News reports that means a long-hold for gold.
2022 will mark the end of the pandemic and a full economic recovery, JPMorgan says
After nearly two full years of Covid-driven chaos, JPMorgan Chase is predicting 2022 will usher in a return to normalcy and a full healing of the economic wounds caused by the health crisis.
“Our view is that 2022 will be the year of a full global recovery, an end of the global pandemic and a return to normal conditions we had prior to the Covid-19 outbreak,” Marko Kolanovic, JPMorgan’s (JPM)chief global markets strategist, wrote in a note to clients on Wednesday. “This is warranted by achieving broad population immunity and with the help of human ingenuity, such as new therapeutics expected to be broadly available in 2022.”
America’s biggest bank expects progress on the health front will spark a “strong” recovery in the economy, marked by a return of global mobility and robust spending by consumers and businesses.
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Kitco News/Anna Golubova
Gold has been ‘shockingly stable’: It’s a long-term play as U.S. dollar rolls over, says Jeffrey Gundlach
Billionaire “Bond King” Jeffrey Gundlach sees inflation not returning below the 4% handle next year, and bond markets are already “sniffing out a weaker economy” coming. For gold, this means a long-term hold after a “shockingly stable” and “boring” year.
There are “rough waters” ahead for the financial markets in 2022 as the Federal Reserve looks to accelerate its tapering schedule and raise rates next year, said DoubleLine CEO Jeffrey Gundlach.
“Powell is going to double that pace of taper, which would get us out in March. It’s quite likely that since the stock market and risk assets have been clearly supported for over a decade by balance sheet expansion, it is turning into rough waters,” Gundlach said during the DoubleLine Total Return Webcast.
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Powell’s fourth major shift raises questions about the Fed’s policy credibility
If the Federal Reserve meets expectations next week and announces a more aggressive unwind of the measures taken to boost the economy, it will mark an important policy shift for the U.S. central bank and Chairman Jerome Powell.
The Powell Fed, in fact, has become almost as known for its abrupt changes in direction as it has for the unprecedented levels of stimulus it has provided during the pandemic.
“What the Fed has proven is the difficulty in forecasting by both committee and consensus,” said Joseph LaVorgna, chief economist for the Americas at Natixis and former head of the National Economic Council under former President Donald Trump. “In market parlance, the Fed has bought the high and sold the low. So I do think there will be a credibility issue going forward.”
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