Albert Edwards, Société Générale’s chief market strategist, is warning investors that a stock market plunge is coming. He said the markets haven’t fully priced in the threat of a recession, which means a plunge is coming. In a recent research note, he wrote, “Market meltdown looms. The Fed has, in an act of penance for allowing inflation to get out of control, donned a horse-hair shirt and is fully prepared to drive the US economy into a recession.” In other news, Senator Elizabeth Warren is warning the Fed to tread lightly with rate hikes, urging officials not to drive our economy over a cliff.
Business Insider/George Glover
Investors are still underestimating the Fed’s willingness to trigger a recession and a ‘market meltdown’, a veteran SocGen strategist says
Markets haven’t yet fully priced in the threat of a recession, which means that stocks will plunge much further over the next few months, according to Société Générale’s chief market strategist.
Albert Edwards said the Federal Reserve is now prioritizing taming inflation above avoiding a “market meltdown”, even though equities have suffered a broad and deep sell-off in 2022.
“Market meltdown looms,” he said in a recent research note. “The Fed has, in an act of penance for allowing inflation to get out of control, donned a horse-hair shirt and is fully prepared to drive the US economy into a recession.
Keep reading, here.
CNN Business/Matt Egan
Elizabeth Warren to Fed chair Jerome Powell: Don’t ‘drive this economy off a cliff’
Fed Chairman Jerome Powell conceded that the Federal Reserve’s aggressive interest rate hikes won’t solve two of the biggest problems facing families: high prices for gas and groceries.
During a Senate Banking Committee hearing Wednesday, Democratic Senator Elizabeth Warren urged Powell to proceed with rate hikes cautiously and avoid setting off a recession that costs millions of jobs.
Warren asked Powell if Fed rate increases will lower gas prices, which have hit record highs this month.
“I would not think so,” Powell said.
Warren asked if grocery prices will go down because of the Fed’s war on inflation.
“I wouldn’t say so, no,” Powell said.
Continue reading, here.
The Worse the Bear Market, the Better for Gold
Many of us in the gold community fear bear markets because they can inflict some damage to gold and silver stocks. That is a fair concern even though some go overboard.
That aside, it’s vital to understand that these bear markets are the catalyst for big moves and bull markets in Gold.
Let’s take a trip down memory lane.
From 1969 through 1974 the S&P 500 had declines of 37% and 50%. During this period Gold gained 460%. (The gold stocks bottomed in 1969 five months before the stock market).
You can read the full article, here.