With dozens of news articles suggesting a pivot in the market and millions of people believing it (I’ve been seeing a lot of talk of pivoting on this sub with literally 0 evidence), Powell finally said that it’s simply foolish to even TALK about a pivot in regards to lowering interest rates.
The temporary inflation stats are still “low”because we’ve been draining our oil reserves to keep energy costs down.
I genuinely believe it has just started and 2023-2024 are going to be truly rough years. The feds aren’t even done raising rates and won’t be done until early next year, and then they’ll like keep that rate for months.
Seems like a lot of denial around here. The ONLY good thing is how strong the labor market is, but that might change soon with loads of zombie companies going out of business in the next year or two, and loads of hiring freezes and lowering of consumer confidence.
Listen; I’m a long time investor. I put 14% in my 401k every month no matter what. Will the market recover? Absolutely in my opinion, but it’s going to take a while.
The fed finally has the balls to fight inflation. And I’m all for it, because inflation is PERMANENT, with lower and middle class Americans losing purchasing power by the day, while a temporary crash in asset prices is literally fine, because they’ll recover eventually.
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