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"15 Financial Facts That Just Might Scare
The Living Daylights Out Of You"
by Epic Economist
"Bad financial news doesn't seem to stop coming these days. The compounding effects of the health crisis, the Russian aggression on Ukraine, broken supply chains, soaring inflation, rising interest rates, and a chaotic commodity market are threatening to provoke what some investors are calling "a bone-dry recession," and a full-scale stock market crash. The global economy and the financial sector are recording massive losses as conditions continue to deteriorate by the day. A widespread meltdown is on the horizon, and things could run off the tracks sooner than most people think. According to Business Insider, Wall Street just issued its first official recession and stock market crash warning amid rising interest rates as the Fed starts to roll back its bond purchasing program. All major Wall Street banks are predicting a ‘significant decline’ in the months ahead, and all the way into 2023.
The Fed has caused enormous distortions in the economy and inflated an “everything bubble" over the past two years, but the situation is rapidly reaching a breaking point. According to Bloomberg, the former president of the powerful New York Fed, William Dudley, says that the central bank will not be able to inflation that’s running at a 40-year high without making investors suffer. Meanwhile, several market veterans are warning that stock returns are set to hit the lowest level since the Great Depression, and that a wide-reaching global stock market crash of humongous proportions has already begun.
Investors are becoming increasingly more risk-averse and selling off the stocks of companies that relied on cheap debt to fuel speculative growth, especially in the tech sector. It is known that the tech bubble has started to burst in November 2021, and since then, investors have been walking away en masse from risky assets, leading a series of high-flying stocks to fall back to Earth. Wealthy investors already know that a sizable stock market crash is coming and they have been monitoring the risks and taking defensive positions to prevent further losses. If you doubt it, just check the Short Seller Index.
On the other side of the globe, the outlook isn't good either. China, seen as one of the main engines for global economic growth, is facing numerous financial and economic challenges. On top of that, new virus outbreaks and lockdowns are impacting the production of goods and overseas shipping, which has been sparking severe consequences on global markets and aggravating the ongoing supply chain crisis. China's domestic problems are likely to have a spillover effect on several economies, including the UK and the US, and fuel a full-scale stock market crash as financial conditions continue to worsen across the globe. The signs of a devastating economic and financial collapse are everywhere. It's only a matter of time before we find ourselves in the middle of the worst financial disaster of modern history, and considering the pace at which things are falling apart, we will not have to wait that long.
That's why, today, we compiled warnings, indicators, and recent data shared by Wall Street's top strategists that expose the dire state of the global economy and financial markets, and explain why a huge downturn is ahead."
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