It might be time to worry about a recession again: Morning Brief

Yahoo Finance ^ | 4/10/23 | Brian Sozzi

[CFW]

It could be time to resurface use of the ‘R’ word in your financial lexicon.

No, not ‘R’ as in PE ratio. But ‘R’ as in recession, as in a contraction in economic growth.

I know what you are probably wondering. How is this guy going to pontificate about a recession following a month that created 236,000 headline jobs? How is this guy going to warn the investing masses about a recession when shares of Nvidia are up 85% year to date, followed not too closely behind by an 80% surge in Meta?

All of that is precisely why I am bringing up recession. Well, that and because economic data is beginning to soften.

[CFW]

Ya think? I wonder what suddenly clued him in to the fact that the "economy is doing great" narrative promoted by the Biden administration does not actually translate into a economy that is doing great?

[ClearCase_guy]

The major media will never admit to it. The definition of a Recession is: a Republican wins the White House.

[CFW]

https://finance.yahoo.com/news/inflation-and-bank-earnings-what-to-know-this-week-120010817.html

“Wall Street economists were largely in agreement on Friday that another 0.25% increase in the Fed’s benchmark interest rate is likely coming on May 3, but that this would be the final rate hike of the current cycle.”

As stated in the above link, economists are insistent that the Feds will stop raising rates and soon even reverse the hikes. If they do, then any positive impact on inflation from their previous rate hikes will be for naught. The problem is that the Biden administration keeps creating money to toss to their favored voters. The Feds and Biden administration are bumping heads as they are actually working against each other.

[DownInFlames]

We have been n a recession since January 21, 2021 at 1200 hours. The hour after it was announced Trump lost, markets have been in headline decline.

[fwdude]

Again?

[Starboard]

another 0.25% increase in the Fed’s benchmark interest rate is likely coming on May 3, but that this would be the final rate hike of the current cycle

If the price of oil rises coming into summer inflationary pressures will once again increase and the Fed will be faced with having to hike again. We're in for an extended period of inflation IMHO.

[ConservativeInPA]

No, not ‘R’ as in PE ratio

What kind of moron writes that? Very awkward. Although, PE ratios are whacked. Some market sectors are severely overpriced. That does not bode well when recession hits.