economic performance

Rising interest rates, slowing economy and rising unemployment will prompt US households to sell more stocks in 2023: Goldman Sachs

Rising interest rates, slowing economy and rising unemployment will prompt US households to sell more stocks in 2023: Goldman Sachs

U.S. households, the biggest buyer of stocks since 2020, are expected to sell more stocks in 2023 due to slowing economic growth and rising unemployment, according to Goldman Sachs strategists. The macroeconomic backdrop will push households to sell $100 billion worth of US stocks in 2023, wrote strategists led by David Kostin, chief US equity …

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Stock markets to fall another 40% as severe stagflationary debt crisis hits over-leveraged global economy

Stock markets to fall another 40% as severe stagflationary debt crisis hits over-leveraged global economy

NEW YORK (Project Syndicate)—For a year now I have argued that rising inflation would be persistent, that its causes include not only bad policies but also negative supply shocks, and that the banks’ attempt power plants to fight it would result in an economic hard landing. When the recession does come, I warned, it will …

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'Painfully Slow Capitulation': Why Investors Keep Getting Inflation Wrong

‘Painfully Slow Capitulation’: Why Investors Keep Getting Inflation Wrong

A brutal third quarter in financial markets ended on Friday and one thing is crystal clear: inflation is the most important factor driving asset valuations right now and yet few, if any, are able to accurately predict where it is likely to go. . The reason? Professional forecasters, policymakers and traders all continue to dismiss …

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Dow Jones drops 500 points on Friday as stocks post third straight quarterly loss and set new lows in 2022

Dow Jones drops 500 points on Friday as stocks post third straight quarterly loss and set new lows in 2022

U.S. stocks fell sharply on Friday, with major indexes posting their lowest levels since 2020 and posting a third straight quarterly decline as investors grew fearful that aggressive interest rate hikes by the Federal Reserve could drive the economy to slow in an attempt to quell inflation. What is happening The Dow Jones Industrial Average …

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Market volatility replaces inflation as the biggest risk, raising the odds of a Federal Reserve pivot

Market volatility replaces inflation as the biggest risk, raising the odds of a Federal Reserve pivot

Market instability is the biggest risk for central banks globally, superseding inflation, due to massive leverage. So far the US Federal Reserve is lucky as there is low volatility in the SPX stock market, -2.11%, even if there is a bear market. Market stability gives the Fed space for the most aggressive rate hike campaign …

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Timber prices plunge as higher rates hit housing

Timber prices plunge as higher rates hit housing

Text size Homebuilders are seeing more cancellations following the sharp rise in mortgage interest rates. Justin Sullivan/Getty Images Timber prices have fallen more than 60% since the start of the year, but don’t count on a recovery soon. Rising interest rates and inflation will continue to dampen demand for single-family homes. “Homebuilders have faced a …

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The Federal Reserve misses a crucial turning point in its fight against inflation because it believes in bad data

The Federal Reserve misses a crucial turning point in its fight against inflation because it believes in bad data

The Federal Reserve cannot see the probable economic crash that is coming because it is always looking in the rear view mirror, where it sees nothing but high inflation. The danger arises because the consumer price index and the personal consumption expenditure price index – the two most important indicators of inflation – have a …

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Falling stocks and bonds jeopardize technology, the dollar and private equity

Falling stocks and bonds jeopardize technology, the dollar and private equity

Text size Japan had to step in to support the decline of the yen for the first time since 1998, even as it tries to keep interest rates low. Akio Ko/Bloomberg The world has been addicted to cheap money for years. Now we see what the withdrawal looks like. The lifting of interest rates from …

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Ray Dalio says stocks and bonds need to fall further, predicts US recession in 2023-24

Ray Dalio says stocks and bonds need to fall further, predicts US recession in 2023-24

As the world waited for the Federal Reserve to make its third “jumbo” interest rate hike, Bridgewater Associates founder Ray Dalio issued a warning to anyone still clinging to hopes that Beaten asset prices may soon rebound. According to Dalio’s estimate, the Fed must continue to raise interest rates substantially if it hopes to successfully …

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