In just 12 months several big caps lost more than 70% of its market cap. If we are not in recession, what kind of economical condition we are? $META $PYPL $ROKU and so on……
— Antonio Costa (@ACInvestorBlog) November 3, 2022
He was asked about +50 in Dec and he dodged saying “it’s about the pace, what level we get to, and how long we stay there.” But he left it open. But he also left 75 open. And implicitly left 100bps open. HE DOES NOT KNOW. The ROAD IS WIDE OPEN…
2/— Paulo Macro (@PauloMacro) November 2, 2022
And then when asked about whether rates need to go positive real, he said they try to use forwards (but that is what traders say inflation is). Unsaid: eventually there needs to be convergence between what the market prices in with reality. 4/
— Paulo Macro (@PauloMacro) November 2, 2022
This was the most hawkish conference of the year. If you didn’t get the memo and are long equity risk (especially of the duration kind), you are dancing on a cliff’s edge juggling chainsaws without a net or gloves. /FIN
— Paulo Macro (@PauloMacro) November 2, 2022
Powell Admits the Fed Is Failing on Inflation, and Promises More Rate Hikes: Mises
These are the same people, of course, who now claim to be “surprised” by the appearance of 40-year highs in price inflation rates over the past year—after printing trillions of dollars—and insist no one saw it coming.
Rising inflation and an Economic Downturn: Morgan Stanley To Start Layoffs in Coming Weeks Globally
Wall Street major Morgan Stanley is expected to start a fresh round of layoffs globally in the coming weeks, three people with knowledge of the plan said, as dealmaking business takes a hit due to rising inflation and an economic downturn.