The US is going through a “textbook” financial crisis, says billionaire investor Leon Cooperman, warning markets of a recession this year. “I think the 4,800 on the S&P will be a high that will stand for quite some time,” Cooperman said, referring to the levels reached last January. All eyes will be on the closing of the Fed’s two-day meeting, where expectations have settled around a 25 basis point rate hike. Projections for markers including unemployment, inflation, GDP, and the level at which the hiking campaign will finally end will also be announced. Between the banking crisis and potential rate hike, investors have turned to gold. “We have seen kind of a flee from the banking system,” said Gareth Soloway, chief market strategist at inthemoneystocks.com and verifiedinvesting.com. “Money absolutely did move away into gold and that’s definitely one of those fear-factor trades that has helped gold go higher,” added Soloway, who predicts prices to reach $2,100 by the end of this year.
Business Insider/Jennifer Sor
Billionaire investor Leon Cooperman says the US is going through a ‘textbook’ financial crisis and the S&P 500 won’t hit a new high for a long time
The US is going through a “textbook” financial crisis – and that means investors should expect sluggish returns for in the S&P 500 for a long time, according to billionaire investor Leon Cooperman.
In an interview with Bloomberg on Monday, the Omega Advisors CEO pointed to recent market volatility stemming from the failure of Silicon Valley Bank, which has shaken confidence in the US banking sector.
Continue reading, here.
CNBC/Jeff Cox
Here’s everything the Federal Reserve is expected to do Wednesday
The Federal Reserve will close its two-day meeting Wednesday with a heavy air of uncertainty as the central bank moves forward in its efforts to bring down inflation and stabilize the troubled banking sector.
At the moment, those two goals seem to be in conflict: Getting inflation down requires the same higher interest rates that have inflicted crisis-level effects on banks.
You can read the full article, here.
Yahoo Finance/Ines Ferré
Gold: Money from banking system ‘absolutely did move away into gold,’ says strategist
Gold bugs have been waiting for this moment. The precious metal touched $2,000 an ounce on Monday amid a wobbly banking sector, elevated inflation, and expectations of a 25 basis point rate hike (or none at all) at the next Fed meeting.
“When things get scary out there, investors run to safe havens, and gold is basically one of those major safe havens,” Gareth Soloway, chief market strategist at Inthemoneystocks.com and verifiedinvesting.com.
You can read the full article, here.
About the Author
