Wednesday, June 22, 2022

Lets see...

 


The stock market's nightmare scenario of a 50% drop is now more likely after the 'stubborn' Fed's biggest rate hike in decades, hedge-fund strategist says


"...while the Fed is trying to tame inflation by lowering consumer demand for goods and services, it's actually supply side constraints and higher commodity prices that are driving the bulk of inflation, a side of the economic equation that the Fed exerts little influence over."


That's why it would have paid dividends for the Fed to reign in consumer demand by kicking off its interest rate hike cycle earlier than it did, as that would have helped tame demand before supply chain constraints and higher oil prices added fuel to the fire.


(It couldn't do that because it knows what happens at 4% and it wouldn't have mattered anyway because it's to much $ in the system being complicated by supply shocks in oil and food)


A double whammy of contracting valuations and lower earnings forecasts "should occur," Cecchini said, sparking more downside in the market. Despite the recent market volatility, a 40-year record in inflation, and rising interest rates, Wall Street analysts haven't budged in lowering their 2022 corporate earnings estimates.


Take you pick:


1 Thessalonians 5:3

3While people are saying, “Peace and security,” destruction will come upon them suddenly, like labor pains on a pregnant woman, and they will not escape.


Or

Revelation 9:20-21

The rest of mankind who were not killed by these plagues still did not repent of the work of their hands; they did not stop worshiping demons, and idols of gold, silver, bronze, stone and wood—idols that cannot see or hear or walk. Nor did they repent of their murders, their magic arts, their sexual immorality or their thefts.






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