Dxy can only go so high until markets really break. At 113, it’s not that far from 120, which may be the tipping point. By that time sp500 will reach 30%+ drawdown and nasdaq at 45%. This likely happens within q4, very soon. Then jp will need to decide if surpassing the 2008 crash is the soft landing he was going for.
I think Powell will assess based on the inflationary pressure. I think from his speech, he alluded that soft landing might be out of the question and he is willing push as far as he can until the economy cries uncle.
Just as my response to another reader, I think there might be few things that Powell will look at before he has a change of heart.
Kaal is the root of 'Kali' in Hindi. Kaal means time -- specifically, the time that eats you (ie the god of death) -- day by day by day, time is eating away all those precious non-renewable moments.
I hate inflation, but I love this article because I love Bali and the use of Bali as an example of what's happening in the world w inflation today is excellent. I am wondering since both my son and I read all of your articles, is it possible that my son wrote this article and sent it to you? It's signed TD and my son's Name if Tommy Driskill plus he is currently spending two months in Bali.
Hi Thomas, thank you and your son for taking the time to read the article. I just hope that I can constantly deliver values for readers to understand the more complicated plumbings of macroeconomics.
I think we might have a writing workshop in the near future. That might be a good opportunity for your son to submit his work for us to take a look.
I will let you know when the writing workshop is going to start.
Are we looking at something gonna break within weeks? Seems like Asian currency crisis 2.0 would be the catalyst for FED pivot. Or, some kinda accord between major nations.
Dxy can only go so high until markets really break. At 113, it’s not that far from 120, which may be the tipping point. By that time sp500 will reach 30%+ drawdown and nasdaq at 45%. This likely happens within q4, very soon. Then jp will need to decide if surpassing the 2008 crash is the soft landing he was going for.
Thank you for reading! Much appreciated!
I think Powell will assess based on the inflationary pressure. I think from his speech, he alluded that soft landing might be out of the question and he is willing push as far as he can until the economy cries uncle.
Just as my response to another reader, I think there might be few things that Powell will look at before he has a change of heart.
Please stayed tuned for that.
Kaal is the root of 'Kali' in Hindi. Kaal means time -- specifically, the time that eats you (ie the god of death) -- day by day by day, time is eating away all those precious non-renewable moments.
Thank you Don! Really appreciate you read the article and provide additional information.
Great article, please keep them coming
Thank you for reading!
I hate inflation, but I love this article because I love Bali and the use of Bali as an example of what's happening in the world w inflation today is excellent. I am wondering since both my son and I read all of your articles, is it possible that my son wrote this article and sent it to you? It's signed TD and my son's Name if Tommy Driskill plus he is currently spending two months in Bali.
Hi Thomas, thank you and your son for taking the time to read the article. I just hope that I can constantly deliver values for readers to understand the more complicated plumbings of macroeconomics.
I think we might have a writing workshop in the near future. That might be a good opportunity for your son to submit his work for us to take a look.
I will let you know when the writing workshop is going to start.
Thank you for the clear explanations and examples regarding good/bad inflation.
Thank you for reading. Much appreciated!
Are we looking at something gonna break within weeks? Seems like Asian currency crisis 2.0 would be the catalyst for FED pivot. Or, some kinda accord between major nations.
Hey there. Thank you for reading.
You are spot on that there is a potential for Asia Financial Crisis 2.0. We are keeping an eye on that.
The FED pivot might be a bit more complicated. But there might few impetuses for the FED to pivot. Stay tuned. We will roll that out later on.