Bank of America is warning of more troubling times ahead for investors. The bank’s June Fund Manager Survey signals “deeper investor misery” as the S&P 500 fell into a bear market amid fears of aggressive interest rate increases from the Fed. David Einhorn, President of Greenlight Capital, believes that the Fed will fail in its battle to tame soaring inflation. He thinks the current market environment will cause gold prices to go up. In other news, the producer price index, a measure of the prices paid to producers of goods and services, rose 10.8% over the past year.

 

Yahoo Finance/Brian Sozzi
BofA survey signals ‘deeper investor misery’ as S&P enters bear market

The June Fund Manager Survey by Bank of America (BofA) “signals deeper investor misery” as the S&P 500 fell into a bear market amid fears of aggressive interest rate increases from the Federal Reserve.

“Wall St sentiment is dire but no big low in stocks before big high in yields & inflation,” BofA stated, “and the latter requires uber-hawkish Fed hikes in June & July.”

Optimism on global growth fell to a new low in June, with the net percentage of fund managers expecting a stronger economy — meaning the difference between those expecting a stronger economic minus those expecting a weaker economy — hitting -73% this month, the lowest since 1994.

You can read the full article, here.

 

Fox Business/Megan Henney
Wholesale inflation climbs 10.8% in May, hovering near 40-year high

Wholesale prices accelerated again in May as inflation continued to hover near a 40-year high, the result of strong consumer demand, pandemic-related supply chain snarls and the Russian war in Ukraine.

The Labor Department said Tuesday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, climbed 10.8% in May from the previous year. On a monthly basis, prices grew by 0.8%. Although that was slightly lower than the 10.9% forecast from Refinitiv economists, it suggests that inflationary pressures in the economy remain strong.

Keep reading, here.

 

Business Insider/George Glover
Billionaire investor David Einhorn sees gold rising much higher — and says the Fed is bluffing about its ability to tame inflation

David Einhorn believes that the current market environment will cause gold prices to run up, and that the Federal Reserve will fail in its battle to tame soaring prices.

The Greenlight Capital founder told the Sohn Conference that Fed policymakers are likely just “bluffing” when they say they’ll tighten monetary policy to curb inflation – which eased slightly to 8.3% last month.

Gold has climbed steadily this year with investors favoring risk-off assets as stock market volatility surges. It is up 1.8% to $1,847.80 an ounce, although it had slipped 0.26% in early-morning Friday trading.

Einhorn is bullish on the precious metal because he believes inflation will prove long-lasting. Investors often see gold as a ‘safe haven’ asset because it maintains its value during periods of volatility.

Continue reading, here.

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