2022 just ended and with it went any deniability people were holding on to, the fact is that things are looking bleak and we could be in a bear market for a very long time.
The S&P 500 has lost 19.4% in 2022 which is a frightening $8 trillion decline in market cap. The Nasdaq has shed an even worse 33.1%. Then you have the crypto market which has lost a staggering 65%. The market is dropping fast and there’s no sign it will be slowing down anytime soon. And we haven’t even seen the worst of it yet, this might seem like an exaggeration but the worst financial catastrophe since the great depression could be on the horizon.
Many are losing faith in the financial industry and feel lied to while others are hoping blind optimism can get them by. The fact is that we are in an unprecedented situation that will be difficult to get out of. housing markets, stocks, crypto currencies and anything else you can think of are all feeling the effects. It’s a web of destruction and everything is getting pulled together and dragged down at the same time.
2023 and beyond
2023 was given a sad introduction when the IMF Chief Diksha Madhok claimed one third of the world economy would be in a recession this year. But even that was likely an optimistic estimate, the reality is likely to be much worse. A total world recession is in the cards.
Inflation is out of control, the United States had annual inflation of 7.1% in 2022 and even worse global inflation was 8.8%. And interested rates keep being raised, the current interest rate in the US is 4.25% and interest rates in other countries across the world are getting higher and higher. But if you were to believe some agencies you would think these horrible numbers are limited to just 2022. Certain analysts are predicting the inflation rate in the US to drop to 2.8% in 2023. But realistically this won’t happen.
So I’ve told you some numbers and stats but those numbers are coming from the government as well as agencies and analysts tied to the government. Should we really put it past these bureaucratic behemoths that we call government to cook the books? The real numbers could be far worse than what the general public is being told.
A new reality
After all that’s been said you might be asking yourself where’s the good news in this article? Well the point of this article isn’t to make anyone feel good or give false hope, the point of this is to show the consequences bad financial decisions are going to have on the world. And so since there isn’t any good news how about I give you a prediction instead? I predict we’ll see a global recession in either 2023 or 2024 which will be followed by a global depression in 2025. History will repeat itself and the early part of the century will see a horrible economic downturn that could last 10 years. This will be the great depression 2.0.
This year isn’t just another ordinary downturn that the world will quicky get over. This year is the start of a Bear Era where the economic loss is suffocating and hope seems pointless.
I wrote this article and it's from my site, I'll leave the link here to the article if the mods allow it.
Leave a Reply