This is the first time in history the Federal Reserve is doing monetary tightening in a global downturn.

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by BoatSurfer600

The Fed has never hiked rates during a recession, expect stock markets to fall another 50% – Todd ‘Bubba’ Horwitz

 

What was widely viewed over the summer as the last chance to buy, was very likely the last chance to sell. The exact opposite. So far, the Nasdaq has declined -30% in 2022. So about half way to a bullish Fed “pivot”.

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Warren slams Jerome Powell over interest rate comments: ‘I’m very worried that the Fed is going to tip this economy into recession’

Warren quote at end of article: “You know what’s worse than high inflation and low unemployment? It’s high inflation with a recession and millions of people out of work,” she told Powell. “I hope you consider that before you drive this economy off a cliff.”

Warren sure sounds like a shill for big business. Also, people keep acting surprised that rate hikes are still continuing, just like clearly outlined for months. Powell only had to be so hawkish because QT deniers kept salivating for more money printing, which caused the marker to ignore QT, only making the goal of the FED harder to reach.

QT is going to keep going and continue to be a headwind. The more knowledge we have to prepare us for how to invest in these conditions, the better.

And to think, investors are front-running rate cuts in a recession. Which equals a long bear market. The current “best case scenario”, is actually the worst case scenario. Which is what you would expect in a Full IDIOCRACY.

Every time the monthly supply of new houses has exceeded 9 months a recession has ensued. Currently at 10.8 months.

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