A recession may be closer than you think…
Before every recession within the last 30 years, copper has tipped into a bear market.
Well, it just happened again, and experts believe that it could indicate that another economic downturn is underway.
Business Insider reports that the metal dropped 24% from its May 2021 peak.
Jane Foley, Rabobank senior FX strategist said, “These moves suggest that the market’s sensitivity to recession risks has stepped up.”
While recession fears grow, the battle to tame inflation rages on.
Fed Chairman Jerome Powell recently said the Fed’s commitment to fighting inflation is “unconditional,” telling Congress that U.S. economic conditions are “very far” from the central bank’s targets.
While the Fed plans to get more aggressive with interest rate hikes, many experts think we should be preparing for much higher rates to come.
In a series of recent tweets, billionaire investor Bill Ackman said that he thinks rates would top 5% or more over the next year.
In other news, billionaire investor Seth Klarman is advising investors to have some of their portfolios in gold.
He said, “I’m a fan of gold. I think gold’s valuable in a crisis. If the world turns to hell, the war expands and gets worse, God forbid a nuclear weapon is used, I think people are going to say: ‘How do I know what anything’s worth anymore? I’m going to make sure I have some gold because I don’t want to not have money at a time of desperation.’ It may never come to that, but I think it’s prudent to have a little bit of your portfolio in gold.”