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TopicStock Market General #46
Dan_Haren-
08/22/22 1:17:34 AM
#103:


I think that above video is probably the best, most succinct prediction out there. At the end of the day the stock market gains confidence from inflation plateauing but for inflation to truly go down to 2-3% we are a long way. And as long as we continue to have growth like we have now, inflation won't go down to that level. It all comes down to how determined the fed is. And we know from history that controlling inflation takes priority over all other problems, even if that means sacrificing peoples jobs, livelihoods, investments, etc. So its a matter of time, perhaps not this year, maybe a year from now, maybe 2 years from now, but winter is coming for the stock market. The only alternative to a financial crisis level of recession is if the fed is on board with living with moderate range inflation, like 4-5% for a long period of time. Thats the only way the engineer a "soft landing" but its only soft for the optics. 4-5% inflation and at times higher will have repercussions.

Thats why I'm a pessimist.
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