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Has Inflation Peaked and Are We In a Recession


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Part 1

The onset of the Russian-Ukraine war has caused food and gas prices to hit record highs. Along with pent-up consumer demand, US Inflation is at a 40-year high. This is likely to push the Federal Reserve to embrace a hawkish monetary policy and aggressively raise interest rates to curb inflation.

Join us in this session as we invite guest speaker and market veteran, Wong Kon How, as well as IG’s Market Strategist, Yeap Jun Rong share how you can navigate through this current landscape with potential trade setups.

 

 

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Part 2

The onset of the Russian-Ukraine war has caused food and gas prices to hit record highs. Along with pent-up consumer demand, US Inflation is at a 40-year high. This is likely to push the Federal Reserve to embrace a hawkish monetary policy and aggressively raise interest rates to curb inflation.

Join us in this session as we invite guest speaker and market veteran, Wong Kon How, as well as IG’s Market Strategist, Yeap Jun Rong share how you can navigate through this current landscape with potential trade setups.

 

 

IG Group.PNG

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Two things are determining inflation currently.

1.    Excessive money supply pumped into the economy by the central banks via money printing (digitally nowadays), called QE that is not been significantly reduced yet!!!! They are only focusing on rate hikes!!

2.    Major energy and other soft commodities prices rises.

These two are killers of the economy. So inflation could continue to rise in places. Excess money is also used by bankers and financiers to speculative in push commodities prices in either directions.

By empirically defined recession indicators, YES, we are in the throngs of a started bear market / recession (likely to be deeper later).

Debt burdens will have to be reduced, many will do it when in big losses and not act before (as they HOPE it will not be the case). World debts by countries is usually in dollars hence increasing dollar value IS BAD for them ( and for central banks) and so the world recession fears now.

 

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