4 months ago • 5:52 mins
Investors have recently been betting that inflation has finally peaked, meaning that the Federal Reserve (the Fed) will be able to scale back its interest rate hikes soon – a move that would boost the economy and riskier assets like stocks. But that may be an overly optimistic view: while there are encouraging signs that inflation is easing, other signs suggest we’re going to be dealing with this for a while…
The economy is already cooling off. The Atlanta Fed’s GDPNow model – which attempts to track economic activity in real time – estimates that the U.S. economy shrank by 1.6% in the second quarter, suggesting the economy may already be in a recession. The labor market is still stron
But there’s a risk of a rude awakening. So Stéphane says you might want to approach the latest stock rally with caution.
The global investment firm has updated its outlook for 2023. So Stéphane’s taken a look at how it sees things going and what you can do to prepare for it.
Big fund managers and retail investors alike are starting to see its beauty, but as Russell notes, you can still buy this long-shunned asset at good prices.