- A recession usually takes everyone by surprise.
- The current environment is ripe for a recession, we just need a trigger.
- The stock market will react as investors react, which is usually completely irrationally. Be prepared.
The latest FED meeting didn’t give us much news.
The monetary policy remains accommodative with the interest rate between 1% and 1.25%, while the balance sheet normalization program is purely cosmetic with minimum monthly asset sales.
We shouldn’t expect anything else from the FED as their objective is to maintain full employment and stability. As long as there isn’t significant inflation, the low interest rates help lower the unemployment rate. More →