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As inflation, rising cost of capital and recession pressures squeeze revenue & earnings expectations for corporations, the Q2 earnings calls about to start over the next few weeks may be the next trigger to send stocks falling.
Financial advisor Lance Roberts & host Adam Taggart discuss the likely implications and timing of this, as well as how if/when the Federal Reserve "pivot" occurs, it may have disappointing results for the many investors eagerly awaiting as resumption of the bull market.
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Capital manager David Hay of Evergreen Gavekal returns for Part 2 of our interview with him to discuss the odds for stagflation, recession and to share which assets he most favors right now given his macro outlook. https://youtu.be/bwtXk30waB8
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As we head into the heat of summer, the US economy finds itself in the doldrums.
GDP growth for the year has been negative both in Q1 and Q2 -- which means we're now officially in a "technical recession".
Inflation remains at a 41-year high. The financial markets continue to suffer one of their worst years so far in history. And now the housing and jobs markets are also cooling fast.
What can we expect from the second half of the year?
For perspective, we turn to David Hay, co-founder & co-Chief Investment Officer of Evergreen Gavekal, a financial advisory firm managing $3.5 billion of investor capital.
As its steward, he can't simply rely on an "opinion"; has to steer this capital safely through what's coming next. So his conviction needs to be as high as possible. https://youtu.be/UWOWB5Vgqww
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Series I Savings Bonds, also known as I-bonds, are offered by the US Treasury as a way to protect the purchasing power of your money from being eroded by inflation.
This is protection many investors want badly right now, as inflation has roared back to life over the past year and a half. After decades most spent under 2%, as of the time of this recording, the official Consumer Price Index, or CPI, is currently at a 41-year high of 8.6% annualized:
The way that I-bonds defend against this is they earn a monthly interest rate that’s usually higher than the CPI. So their return beats or comes quite close to the officially-reported inflation rate.
In this video, we explain what I-bonds are, how they work, what their benefits are & how to buy them. https://youtu.be/efDIvlbgwDo
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Higher inputs costs and demand destruction from inflation (and the Federal Reserve's interest rate hikes) are resulting in margin compression for companies, pinching their profits.
As a result, companies are revising downwards their future earnings expectations.
So as Q2 earnings calls start happening over the next two weeks, expect a tsunami of these revisions to force Wall Street analysts to downgrade their target prices for many stocks.
Will these be the next big shoe to drop that will force stock prices down even further? It sure looks so.
Financial advisor Lance Roberts and host Adam Taggart also tackle Fed policy, recession risk, and America's massive retirement problem in this wide-ranging Weekly Market Update.
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Economist Steve Hanke returns here in Part 2 of our interview with him to explain what impact a Fed pivot back to easing would have on inflation.
He also shares his thoughts on how he thinks stocks, bonds, gold and other assets should fare over the coming year given his macroeconomic outlook. See the YouTube Video for the charts and graphics: https://youtu.be/o2keL8Z8Y7M
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Inflation remains at a 41-year high and continues to severely pinch households when paying for food, gas and nearly everything else.
How much longer will it plague us? And might it get even worse from here?
To find out, we welcome Steve Hanke back to the program. Steve is professor of applied economics at the Johns Hopkins University in Baltimore, Maryland -- and the last time he appeared on this program, he correctly predicted that America's Consumer Price Index, or CPI, would hit 9% -- which it just did this past month. See the YouTube Video for the charts and graphics: https://youtu.be/N2DftIzEOOc
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Learn more about your ad choices. Visit megaphone.fm/adchoices
Learn more about your ad choices. Visit megaphone.fm/adchoices
Learn more about your ad choices. Visit megaphone.fm/adchoices
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