Prospector News Publisher Michael Fox is joined by The National Investor, Chris Temple to discuss the state of play in the economy. Sell in May and Go away! This mantle seems to be out of touch as the Markets refuse to acknowledge the dark clouds on the horizon and FOMO has the Bulls pushing higher.

We discuss the 3 horsemen of the Economic Apocalypse that are riding across the horizon. Powell met with Bernanke last week and was the only one that sounded dovish on further rate hikes to tame inflation. Other Fed voters and outsiders are suggesting more hikes for longer and a higher target rate. The higher rates have failed to make a dent in the employment numbers. In fact, unemployment is lower now than it was at zero rates.

Inflation is starting to rear its head again. The Fed is likely to be emboldened to continue to raise further until something breaks down.

Also on the horizon the US Gov’t continues its game of chicken in Congress to increase the debt ceiling and avoid default. Fitch’s Rating has the US treasuries on Downgrade Watch and short-term Bond rates have inched higher this week as a result.

Finally, the bank crisis is NOT over yet, and there are likely more failures in the cards. The Gov’t and Fed has made it clear that depositors will be made whole but investors will take it on the chin. Likely leading to more deleveraging and more consolidation of the banking sector into fewer and larger hands.

Again, the markets seem to be whistling past all the warning signs.

“Trouble ahead and Trouble behind. I guess this notion just crossed my mind” – The Grateful Dead

https://www.nationalinvestor.com/