Walk The World The latest edition of our finance and property news digest with a distinctively Australian flavour.
Something weird is afoot. There is much talk of falling inflation, moderating wages, record-low unemployment and possible soft landings. Yet some on Wall Street says 2023 will likely turn ugly.
Sure, we had a beautiful January for investors – but what if this is only a mirage—a stock rally that’s already gone too far.
Well, this the warning from strategists at Bank of America, who said investors could face brutal declines if economic growth crumbles in the second half of the year. The risk is that inflation flares up again over the next few months, and that the US economy faces a deeper recession (than that initially predicted) after staying resilient in the first six months of 2023, they wrote. But with more experts seeing potential success for the Fed after a year of panicky recession calls, it may be a warning that’s hard for some to heed. The “most painful trade,” the bank’s strategists wrote, is always the “apocalypse postponed.”
The traditional favourable start to financial markets in 2023, due to investor fund inflows that typically accompany the new year, has been turbocharged by data pointing to a greater possibility of a soft landing for the US economy and, most recently, the signals coming out of the Federal Reserve.
So, underinvested investors need to assess their willingness to lose as valuations surge ahead of the consensus view on the economic outlook says Mohamed A. El-Erian is a former chief executive officer of Pimco, president of Queens’ College, Cambridge; chief economic adviser at Allianz; and chair of Gramercy Fund Management.
The generalised price rally has been so quick and so big for both stocks and bonds that it raises an interesting question for underinvested investors who have not yet put their money to work. What they should do correlates closely, but not entirely, to their economic and policy views.
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Podcast edition: https://episodes.castos.com/dfa/75765a82-d6a2-40f7-a15a-3b361617b45a-SHGN7-S001-S001-T034-ISO1-1.mp3
517K vs consensus. The Fed ain't backing off in 2023 or the first half of 2024, regardless how much shenanigans went on with the figures. Unemployment the lowest since 1969, it's gonna get worse before it gets better
Nothing has changed as the people with money still have it and spend it and those with none will not as the energy price rises are small but the energy companies profits will be much higher so We are still getting screwed. It is all worked out .
Guess whom is creating the narrative and guess who is selling into the rally to retail investors? They are one and the same.
Massive layoffs yet unemployment has never been so low. Perhaps job market figures are being pumped is the mirage.
I find this information helpull as the way Martin put's it across so it is up to You to hear what you need to but most of all teach your Children about money management but I feel many parents need to learn it first so for a start saving is the first step.
Haha depends.
why so many ads as there are dumb bitches talking about realestate as what would they know but to divource their Husband and get His real estate.
4th ad I am outa here
Inflation serves the wealthy & destroys those down the ladder!
Apocalypse is postpone, its aways postponed.
Depression Financial Analytics, I dare you to post a positive Financial story with belief. Its not in your DNA to find the positive in life.
i think a lot of people , are making the debt , the banks problem . by taking every cent the banks will lend them .
even if they bail every body in , the banks are going to come up short .
and what will the powers that be do , forgive the debt , with a cbdc and ubi , the world as we know it , will be over ,
and the fourth turning will have started .
as i like freedom , i will part of the price the slaves will gladly pay , to be locked up
Everything soars when you print non stop. Everything will always soar forever more so long as they continue to print.
But alas, it’s nominal not real. Not that anyone these days knows the difference
It’s a lovely sunny afternoon Martin. Go out and enjoy it
loosing permant jobs and increasing part time jobs
Like you said there is a lot of hopium in the air and a lot believe a rosy outlook is still possible for their precious soft landing .
Just proves adjusting Data Reading tools for Policies doesn't work.
See also just released video,"Fake Report! The BLS Just Released a Fake Report as Political Elites Fear a Recession is Imminent",party is over,can't trust these bureaucrats politicians etc from now on,especially in Australia 🙄.
Sell said Cassandra
I love the sight of RBA interest rates rises, in the morning!📈🤠✌
517,000 jobs added in January in the U.S.. Peter Schiff was right, inflation isn't under control over there at all. Layoffs? Pffft. Not for a looong time, not at their current cash rate anyways. If I was Phil Lowe looking at that U.S. jobs data I'd be getting super worried.
I don't spend or waste a extra dime being retired, but I am debt free w/ savings to wait out the coming storm, everyone please prepare too
postponed? oceans hit record temperatures in 2022. i would say everything is on schedule.
Please share world wide in the face of Urusla Von der layed by some BOJO the clown -> Well our job now is DESTROY all King Charles Al Quida terrorists they created, to cause 9/11.
Ban British world wide to be Jamie Oliver!
Thanks Mr. Martin. Still a lot of talking needed to convince everyone the worst is over. Won't be enough …more pain of various kinds to come Australia.
Investors who didn't get in at the bottom should just give up because they have no idea what they're doing.
I'm Ron burgandy?