Recession: I just mentioned the possibility of a recession later this year in a blog post a couple of days ago. Now this headline from another business source dated August 20, 2021: "Flash Recession" Could Hit Markets By The Fall. Rationale:
Markets are acting like the global economy is headed for a slowdown, according to Bank of America.
Unprecedented amounts of fiscal and monetary stimulus have been unleashed into the global economy, yet reopening trades and other trades indicating increased appetite for risk-taking are seeing a W-shaped recovery, indicating momentum is petering out.
The tale of the tape is "recessionary," wrote Michael Harnett, chief investment strategist at Bank of America, pointing to the action in U.S. Treasurys, commodities and global equity markets.
In the U.S., the yield curve when measured by the five-year and 30-year yields, fell to 110 basis points this week, the flattest in a year. A flatter yield curve indicates growth is likely to slow in the months ahead.
The last "flash recession": the last time this happened was just a year ago (?) and last .... drum roll ... thirty-three days. Shortest "recession" on record. It was steep and it turned out to be a great buying opportunity.
The Fed: the Fed has canceled its annual Hajj to Jackson Hole, WY, due to concerns about the delta virus, despite the fact that by that time this surge is pretty much over, and the actual number of folks descening on that western enclave is far less than the number who attended the birthday bash on Martha's Vineyard, just as the delta surge was beginning.
Unemployment benefits forever. Link here. If anyone has ever done any strategic planning, this is right on cue.
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