1/ Told you so. #cpi came in better than expected. The #fed is worried about inflation in a deflationary environment. This is going to get much worse as we progress through the H2 of 2023.
1/I think what happens is the #fed is pushed to reversing course sooner than many think. That will be a risk on environment since liquidity means assets can go up. That should be exceptional for megatech and #crypto.
2/ Also, we should see some relief for developing countries as the USD weakens against their currency. This should reverse the trend of the last couple years, crushing those economies.
I would say the #fed is going to reverse course. They need to start pushing liquidity. This usually means assets will increase. I am thinking those crushed, ie tech and crypto, will do well.
The storm has not passed, it's only begun and we all should be ready. If we are hedging on crypto we should be prepared for legs down, at least for a couple of years.
2/ US Treasuries are now rallying as the world is starting to wake up to what the long end of the yield curve was saying for over a year: future growth and inflation is expected to be crap. This is what the inversion was telling us.
3/ We have the ISM below 50, which means manufacturing is in contraction. It is still a major part of the economy. At the same time, the numbers out of China suck, not exactly the reopening they expected.
4/ The PBOC is already stimulating by offering money, again, to the provinces. This means more real estate purchases, setting off another wave there. The #fed is breaking everything in site, with the evidence of major shifts taking place.
5/ Risk on might be happening soon as liquidity is going to have to flow. This was the problem all along. With too much money, banks do not fail. A store lacks inventory, it goes out of biz; when banks have no $$, the close too.
6/ The masses are always wrong because they do not even understand what money is. Hell Greenspan admitted the Fed didnt 20 years ago. So why do people believe their insane ideologies? Amazing how they hold onto failed ideas.
It's really going to get worse. But is there no way out?
No way out of what in particular?
What do you think we can do to navigate this as best as we can?
This is a good question, I also want to know.
What do you think @ijelady
I will get back to you
1/I think what happens is the #fed is pushed to reversing course sooner than many think. That will be a risk on environment since liquidity means assets can go up. That should be exceptional for megatech and #crypto.
2/ Also, we should see some relief for developing countries as the USD weakens against their currency. This should reverse the trend of the last couple years, crushing those economies.
We're doomed! What's the most logical plan then? What would be the best way to protect our assets?
I would say the #fed is going to reverse course. They need to start pushing liquidity. This usually means assets will increase. I am thinking those crushed, ie tech and crypto, will do well.
The storm has not passed, it's only begun and we all should be ready. If we are hedging on crypto we should be prepared for legs down, at least for a couple of years.
If the #fed moves to easing, I have a feeling #crypto takes off.
2/ US Treasuries are now rallying as the world is starting to wake up to what the long end of the yield curve was saying for over a year: future growth and inflation is expected to be crap. This is what the inversion was telling us.
3/ We have the ISM below 50, which means manufacturing is in contraction. It is still a major part of the economy. At the same time, the numbers out of China suck, not exactly the reopening they expected.
4/ The PBOC is already stimulating by offering money, again, to the provinces. This means more real estate purchases, setting off another wave there. The #fed is breaking everything in site, with the evidence of major shifts taking place.
5/ Risk on might be happening soon as liquidity is going to have to flow. This was the problem all along. With too much money, banks do not fail. A store lacks inventory, it goes out of biz; when banks have no $$, the close too.
6/ The masses are always wrong because they do not even understand what money is. Hell Greenspan admitted the Fed didnt 20 years ago. So why do people believe their insane ideologies? Amazing how they hold onto failed ideas.