Discussion on global economy and financial markets - Page 24

Brace for another fed hike...will it be 50 basis points ?

https://youtu.be/OMddnbj-pZ0

Originally posted by: mishkil88

Brace for another fed hike...will it be 50 basis points ?

Federal Reserve have raised interest rates by 0.50% in final meeting of 2022. lnflation is still much too high. Powell is trying to drag down expectations with his speech to get us closer to target without having to raise rates by 75 BPs again in the next meeting. The Fed messed up by letting inflation get out of hand in 2021 and needs to regain credibility.

At close 14 December 2022

The main issue for 2023 is whether inflation pressures ease sufficiently to allow central banks to step away from rate hikes and potentially begin easing.

We expect inflation will be on a downward trend as global demand slows.

This should allow central banks to eventually change direction and may set the scene for the next economic upswing.

Markets and economies move in cycles. There is no certainty that we have passed the worst of market conditions, but the contours of the next upswing are visible on the horizon!!

The beaten-down investors of 2022 in Churchill’s words need to keep going into 2023.

Markets, of course, are forward looking and usually price in bad economic outcomes ahead of time. It’s possible that we’ve already seen the worst declines in equity markets.

This may be the case if the U.S. has only a mild recession in 2023. On the other hand, markets may transition from the current ‘bad news is good’ narrative that sees soft economic data as heralding a U.S. Federal Reserve (Fed) pivot, to a ‘bad news is bad’ scenario wherein fears of significant contraction in profits and jobs lead to further market downturns.

This is prior to Christmastime, many financial institutions and investors prefer to book profits, or mild losses before moving to their holiday destinations. Selling will be rampant in equity. Better to be cautious before seeing the next year's trend.

Every rupee is heard earned money, we are paying taxes on it, so let us be cautious before spending/ investing it.

Yes, risk taking is necessary, but it should be via media, not up to too far.

https://twitter.com/Forbes/status/1603409699398983680?t=cOlM7aQjdNltxG8kzQWcqA&s=19

Heavy declines across the globe. Same is reflected in India for past 2 days. Portfolios are bleeding now.

Originally posted by: mishkil88

Heavy declines across the globe. Same is reflected in India for past 2 days. Portfolios are bleeding now.

The next week will see more red in indices.

😒