Everybody now is focused on inflation, when they should be focusing on the outlook of fundamentals for companies heading into 2023.
The way I see it, people are struggling wether inflation is going up or down. People’s savings are gone due to the elevated prices all year round, especially for necessities like housing and gas. And so buying power in general got depleted, or at the very least decreased significantly. Now couple that with the high interest rates and you got your recipe for disaster.
Companies will start laying people off, and they’ve started already. And when earnings for companies start coming in very low, I think the market will take a veryyy big hit. I cant see the market recovering before this happens.
Anybody got an opposing thesis/bull arguments?
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