Sarah Ketterer, Causeway Capital CEO & Sharmin Mossavar-Rahmani, Goldman Sachs CIO of Wealth Management discuss the Fed’s latest rate hike and believes more work has to be done. They also talk about why cyclical stocks are among the best performers.
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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
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The stock market is a reflection of investor confidence in the economy. An increase or decrease in economic activity can have a direct impact on stock prices. A market priced for a recession indicates that investors anticipate a slowdown in economic growth that could potentially lead to a recession.
A recession is typically characterized by a decline in economic activity, lower consumer spending, and high unemployment rates. Investors tend to shift their investment portfolios during a recession, moving from stocks to bonds or cash. As investors sell off stocks, the stock market tends to decline, reflecting the poor economic conditions.
Currently, many analysts believe that the stock market is priced for a recession. The COVID-19 pandemic has caused significant economic disruption since the start of 2020. Throughout the year, governments around the world have enforced lockdown measures to contain the spread of the virus, leading to a significant decline in economic activity. The ongoing pandemic has affected numerous industries, with many businesses reporting significant losses.
The market’s shift in pricing for a potential recession was evident in March 2020, when the S&P 500 and other major indexes hit a low point during the pandemic. This trend continued throughout the year, with investors keeping a cautious outlook on the stock market.
Several factors indicate that the market is priced for a recession. Firstly, companies are reporting lower earnings and profits, and many have warned that the current economic climate may be unsustainable. Secondly, investors are pouring more money into lower-risk investments, such as bonds, as a hedge against the potential of an economic downturn. This has resulted in lower stock prices and declining trading volumes. Finally, the valuations of many stocks suggest that investors are pricing in a recession.
Investors should be cautious during a recession. Many companies may struggle to remain profitable during an economic downturn, and the overall stock market could trend lower. However, some companies may perform better than expected, and identifying those opportunities can result in potentially significant returns.
In conclusion, the market is priced for a recession due to the current economic situation caused by the COVID-19 pandemic. Investors should carefully consider the risks and opportunities presented by a possible recession. With cautious investing, however, there may still be opportunities for investors to achieve returns during a recession.
really amazed with the amount of funds I received from the above info , they are legit.
Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.
Since the crash, I've been in the red. I’m playing the long term game, so I'm not too worried but Jim Cramer mentioned there are still a lot of great opportunities, though stocks has been down a lot. I also heard news of a guy that made $250k from about $110k since the crash and I would really look to know how to go about this.
Basically.. no one knows what is happening and these people are just speculating. Blah blah blah.
Get 10 economists in a room and guest what, get 10 different opinions. The Fed, some of the smartest minds in the world. Well articulated, 50/50 chance. Take each week as it come to make decisions.
They can’t stop people paying for what they want and need. People who can read, write, add and think are in demand.
Their basing all their predictions on “lagging factors”.
We are currently in the jaws of the worst bear markets I have seen, the average stock has been cut in half, and the only way to make money this year has been to either short or to trade long in very short time frames. I'm still at a crossroads deciding if to liquidate my dipping $117k stock portfolio, what’s the best way to take advantage of this bear market?
The fin-Market;s have underperformed the U.S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfoliio of $250k is down to $192k any recommendation;s to scale up my return;s during this crash will be highly appreciated.
At this point I would say only a part of the blow off top has been corrected out, but that is all. A recession is absolutely not priced in, but it is coming. 100% chance. The stock market usually bottoms AFTER the Fed cuts the funds rate. The Fed is still hiking, so it is delusional to think any amount or potential bottom of a recession is priced in. It is impossible to know how bad and when things are going to get when the Fed is still hiking. That damage is usually 9-12 months delayed in the earnings of most companies. Last week's funds rate increase will not be felt until 9-12 months from now. And the next one the same, and on and on. Delusional to think this is all priced in at this time.
Proud to keep saying lockstep
Actual MoM inflation averaged over the past 3 months, annualized: 2%. There already is no inflation.
That dude talking like he doing something to earn his paycheck? lol
WOKE VOTING in 2024 will lead to …. ?
Inhuman of you Powell, just because you have millions, how about others who are struggling to meet the basic needs, evil
Market is NOT priced for recession. Don't believe this BS. You ain't seen nothing yet. Fed will continue tightening. DON'T BE A SUCKER and buy into Fed pivot BS. The market does not get it yet. As Diamond said a Tsunami is headed our way and will arrive in 2023. This knucklehead with the gold necklace does not have a clue. Sarah is more in tune. Side note IN Bankrupt Lebanon their dollar is worth 15 cents. The Fed has no choice but to keep raising or that's where our purchasing power is headed if the Fed does not get inflation under control. Market's are going much Lower. FACT: THE MARKET HAS NEVER I REPEAT NEVER FOUND A BOTTOM WHILE THE FED IS RAISING RATES!!!
Wall street are a bunch crooks dark pool is the problem
.I've maxed out on my 401k contributions. Extra $3k in 2023 if over 50.
.Buy APPLE, MICROSOFT, AMAZON, GOOGLE, VERIZON (VZ), Wells Fargo…then go back to sleep and wake up rich in a few years.
It's just so stupid to me how investors think that these big market leader profitable companies lose 20%+ of their stock values this year.
It's like my house, I know its value and if price were to nose dive -40%, I'm not selling because I don't need to sell. Sure there will be some desperate people who need to sell. But there's a limited inventory of houses or stocks (fewer each quarter as they buy back their stocks), so even if my stock prices go down, I STILL OWN these powerhouse companies that continue to lead.
And Verizon continues to pay 7.5% dividend.
The recession is definitely not priced in because earning haven't fallen yet.
%100 recession
Why do it slow? Get it over with
07/11/2022.
U.S stocks market record high 77.07
Bonds market record high.
Housing market record high.
Credit market record high.
Job market record high.
Gasoline prices 2.13.
Dollar prices high.
Oil prices high.
Food prices high.
Labour market record high.
1929 to 1967 U.S. economics history.
Round the world.
I am reading these comments and it is clear most of you have zero understanding of economics.
This lady lies through her teeth.
These people are either in denial or trying to lead us all over a cliff.
America is sitting on a powder keg waiting for a match and American people are stressed and scared. That is a bad recipe. I anticipate violence will skyrocket.
Yeahhh…agreed
The U.S. JOB CREATION BENCH MARK/BASELINE is 250,000 NEW jobs per month.
Re: THE CREAT RESIGNATION: fact or Gov't invented fiction.
A DERIVATIVE OF "THAT" is ALL THIS TALK ABOUT "LABOUR SHORTAGE" in the USA: again, fact or Gov't invented fiction.
Certainly, NOT in the service sector WHERE PEOPLE ARE "WORKING REDUCED HOURS".
This BEGS THE QUESTION: how good is THE AMERICANS' SENSE OF REALITY?
HINT: NO ONE BELIEVES IN ALIENS, but THE AMERICANS.
University liberal arts students don't stand a chance if they doN'T have A GOOD SENSE OF REALITY. 😀
Ken, Toronto, CANADA (5x University "magna cum laude" grad)
Great market strategies are hard to emulate and put into work to enable an investing client make profits from their trades. This explains why most need an expertise help to marginalize their losses and put them on the right track to recovery and better yields.
The tassels on the flag is that associated with war???
A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
$$$ When regular ppl start posting videos about market is going down it's too late. Always! They go Short, they get squeeze by market makers. Be smart! I'm long in the short term $$$
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.