RE:RE:RE:Futures Plunge due to Huge jobs numbers for Julymaestrodrumboe wrote: ark88 wrote: maestrodrumboe wrote: Brace for higher inflation and higher interest rates.look for the current market mini rally, to do an about face.Not looking Guud for the markets moving forward.
But then, the overall markets shouldn't affect POET or Will IT?
I disagree. I think we are or close to the top for inflation and all the central banks are desperate to find any reason to stop raising rates and avoid a deep recession. To me the unprecedented rate of increase in rates is single that theyre desperate to make this short term as possible. Any prolinged period of high rates and reduced tax revenue would basically destroy all economies.
I agree that we may have peaked or be near the top of inflation..but I don't see the market forces that are currently driving inflation going away Soon.It's a Big Wheel and it don't turn around in a Jiffy..The pressure on higher inflation will most likely be with us for another 12 to 18 months.At the same time I expect the feds to apply at least another 2 or 3 interest rate hikes,bumping up Int. rates a further 1-1.5% higher, before we start seeing some significant punch on Inflation..JMOSesame.
The headline inflation numbers measure the RATE of change. Yes inflation will continue but the rate of increase will slow. The probability is that its more likely that all the drivers of inflation, war, global supply chain disruption, covid driven demand weakness will lessen over time as opposed to getting worse.