Are You Prepared for A Hard Landing?
The comments below are an edited and abridged synopsis of an article by M. N. Gordon
The New Year brings both optimism and hope; a chance to start fresh; to turn over a new leaf. The sentiment is welcome. The outcome, however, can be a disappointment.
Last year was supposed to be one of redemption and prosperity. After the Covid fiasco, the economy was finally reopening. We believed that the resurgence of the economy would bring a new cycle of prosperity.
But then something unexpected happened. On the first day of market trading, January 3, 2022, the S&P 500 hit a closing peak of 4,796. Just over a year later, it closed at 3,808, down over 20%.
Over the year, the yield on the 10-Year Treasury note spiked from 1.66% to 3.70%. In other words, Uncle Sam’s borrowing costs have more than doubled.
At the same time, transitory inflation proved to be enduring, and GDP went negative for the first two quarters of 2022. What happened? The year might have been new, but past actions remained and there was wreckage to be reconciled.
Much of this wreckage was created by central planners at the US Treasury Department and the Fed. Decades of money printing are not without consequences. And, unfortunately, the consequences affect your life and your livelihood.
How will the central planners manipulate your livelihood in 2023? How will Fed monetary policy influence your job, investments, and discretionary income?
Up for discussion: Foolish ideas; wrecking the future; and are you prepared for a hard landing.