RE:RE:Inverted yield curve
braindeadoldguy wrote: Yes Mega, you called it right. This is going to turn fast. I betchya the next rate hike in the USA will be more like 1/2 or 3/4 point, and as usual, the fed is behind that curve, they waited too long, and catchup will now be painful for everyone......................except gold!
I think the prospect of an inverted yield curve is indicating a recession will soon be upon us and the general stock market will be headed lower in this environment. History shows us that gold and gold stocks tend to do really well during times of an inverted yield curve. It is difficult to know exactly what the Fed will do. Just because they say they plan to raise rates aggressively doesn't mean they will actually do it.
The economy will slow down quickly with much higher costs of almost all products hitting consumers and now the war in Ukraine has exasperated the situation and global inflationary pressures will only get worse. Ukraine exports a lot of products through Odesa. Exports have basically halted since the war. Ukraine is known as the "Food Basket of Europe" possibly someday the world. Economically things will get much worse for a lot of people if this conflict drags on for months.
Most people in the world don't understand the significance and importance of Ukraine's role with a lot of global essential products. This conflict comes at a time when food prices and many other commodities are at or near all time highs. Inflation was already bad and now it will get much worse. The Fed is way behind the curve and now as a result it will be forced to make some difficult decisions. The doctor may have to prescribe some awful tasting medicine similar to that Buckley's commercial, it taste awful but it works. Lol Personally I don't think it matters what the Fed does now. The horse is out of the barn so the price of gold will be going much higher regardless of what the Fed does.