RE:DSV heading below $1 by month's end :(Here's my take on what's happening. No doubt PMs are getting hit hard on EXPECTATIONs of more Fed tightening and QT. BUT sooner or later ( and I am leaning toward sooner ) the Fed will have to pivot and reverse course when the economy crashes and unemployment starts to rise significantly. We are already seeing a big slowdown in manufacturing, housing, services and discretionary spending by consumers. This big jump in interest rates that we have never had before will lead to a hard recession. The bond market is screaming recession just around the corner as the yield curve is once again flattening out. Since this is an election year do you think the powers that be will allow high unemployment by election time in Nov? I think the political pressure will be on before then for the Fed to pivot and change course.
My guess is before the summer ends around Aug/ Sept time frame the Fed will be forced to pivot in some form. Either slow down the interest rate hikes, stop QT or both before election time. This will be rocket fuel for the PMs. My take is that PMs will then rocket to new highs within a few months time when everyone realizes the FED will do nothing to slow inflation. USD will of course tank while PMs rise from the ashes. ITS EITHER this scenario or allow the whole economy to implode and the FED has always, I repeat ALWAYS come to the rescue when enough pain forces the Powers that be to reverse course. Hold on our time will come soon.