Recession Alert! Bloomberg Calls It 100% Certain! Prepare!

Bloomberg has predicted the absolute certainty of a US economic recession in 2023, most likely before October. The economic model may mean the Federal Reserve has gone too far in raising interest rates in their thus far futile attempts to constrain inflation.

No model is certain, just an educated guess disguised as a mathematical projection by experts. Have faith, these experts are not always right. But this one seems pretty dire any way you look at it, especially when we have a flock of other experts parroting similar outlooks. 

Your best bet? Beware and Prepare! The next Fed meeting November 1-2 may give us some direction. 

The stock market is highly volatile right now. Be careful! Watch for a 'risk-off' flight to quality. And CD's are becoming more and more attractive for safety and income. 

Bloomberg: https://www.msn.com/en-us/money/markets/forecast-for-us-recession-within-year-hits-100-in-blow-to-biden/ar-AA133nzh

But be sure of one thing, when the rate hikes stop, there will be a few months of wait and see, then we might just see one great stock buying opportunity.

The Fed Will Pivot - First They Must Find a Way to Save Face.

There is no question the consensus of the Federal Reserve Board is to slow rate hikes and quickly restart a quantitative easing program to avoid a 2008 style international financial crisis.

No Question.

So, will they do it? Of course, just as soon as they can manufacture a plausible reason for their sudden reversal. Ah ha, here we go. October 13 brings the newest inflation report for September. Prepare for it to be spun like a yo-yo doing walk the dog. Whatever the number is, it will be 'positive news on inflation, proof the Fed is winning the battle' or something similar. 

But that's ok. The USA economy will benefit, and so will all the citizens, except maybe the Democrats who have been in charge of the country for the last couple years. 

Here's a good take from MarketWatch. (Long but good read)  

Investors are dismissing --- or maybe even welcoming --- signs of cracks in the global financial system. Here's what's at stake. - MarketWatch