The US economy is on track for a hard landing recession scenario, having passed the “point of no return,” JPMorgan strategists said in a note Monday. A survey of its clients revealed that stock market sentiment is at a record low, and even with a potential pause in rate hikes, the future looks grim for investors. If the Fed eases tightening efforts, it may just result in more aggressive rate hikes later. According to the recent Bank of American fund manager survey, about 42% of fund managers see a recession happening within the next 12 months, and 80% expect a stagflationary economy to persist. During this turmoil, investors have turned to gold as a safe haven asset. Willem Middelkoop, the founder of the Commodity Discovery Fund, sees gold prices on the rise from here. “Three years from now, we are going to look back at these gold prices as a bargain. We will see this as the start of when prices really exploded. We are very close to pivot in the global monetary system,” Middelkoop said in an interview with Kitco News.
Business Insider/Jennifer Sor
The US economy is headed for a hard landing as the banking crisis makes a recession more likely – and traders should avoid risk, JPM’s quant guru says
The US economy is likely on track for a hard landing scenario, with recent bank crises significantly raising the odds of a recession, JPMorgan strategists led by Marko Kolanovic said in a note on Monday.
“The Fed … is likely already past the point of no return – a soft landing now looks unlikely, with the airplane in a tailspin (lack of market confidence) and engines about to turn off (bank lending),” strategists said, pointing to the recent tumult stemming from the failure of Silicon Valley Bank.
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Kitco News/Neils Christensen
Once $2,000 breaks, gold is off to the races – Willem Middelkoop
The gold market is again looking for a sustained push above $2,000 an ounce as investors look for safe-haven assets to shield themselves from the biggest global banking crisis since the 2008 Great Financial Crisis.
In a recent interview with Kitco News, Willem Middelkoop, chief investment officer and founder of Commodity Discovery Fund, said that he expects it’s only a matter of time before gold pushes to new all-time this year. However, he added that in the bigger picture, whatever prices are now, in three years, they will be a lot higher.
Yahoo Finance/Brian Sozzi
BofA: ‘Recession fears are up in March’
Recession chatter is picking back up on Wall Street as markets deal with the blow of several bank failures and the potential economic aftermath.
The likelihood of a U.S. recession is back on the rise for the first time since November 2022, according to the latest BofA fund manager survey released on Tuesday. About 42% of fund managers surveyed see a recession happening within the next 12 months, up from 24% in February.
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