Sorry, but It’s Not Doom and Gloom. The Economic Winter Is Coming.

Data paint a far from rosy economic horizon

Eugenio De Lucchi
Avenir

--

Photo by Aditya Vyas on Unsplash

At the end of last year, central bankers considered inflation transitory. This June, people thought the worst for the market was already over. And in August, when July’s inflation stood at 8.5 percent, inflation was under control for some.

In a more realistic world, there was little doubt the optimism behind the mini-summer rally was misplaced. Today, investors are feeling the whiff of a global recession more than ever. Stocks have plummeted, government bonds have collapsed, and cryptocurrencies have plunged further.

Recently, global central banks have again raised interest rates to counter persistent inflation –a move that caught several players in the financial world off guard.

With the stock market’s worst performance since 2008, selling pressure is still mounting. All major stock indexes are in the bear market territory, down at least 20% from past highs.

The benchmark index, S&P500, is on track for a third consecutive quarter of losses. Something that has not happened since the great financial crisis of 2008.

European consumers and businesses are at loggerheads over rising energy costs. And other indications point to rising…

--

--