QUOTE(Davidtcf @ Apr 5 2023, 11:39 PM)
Yea the war is affecting the whole world. US currency being cheapened for spending so much in helping Ukraine.
Russia exports oil, wheat, and other natural resources which is having their prices affected as well. Scalpers will come in to buy cheap from Russia and sell them at a higher price to other countries to avoid sanctions. This is making such goods more expensive. Another cause for inflation. Latest news is OPEC cutting oil production which will also jack up inflation if oil prices reach 100 a barrel.
Countries reopening everywhere now with people going crazy traveling.. Another source of spending making prices go up.
Hence Fed is not giving up on raising interest rates yet as long inflation doesn't go down. Hard to see it go down soon with the above factors. This is why some experts are predicting a recession soon.
When company growths get affected by recession (by too many jobless people, or people not earning enough to buy more of their goods or services), that's when their stock prices will tank. Can only confirm more as future earnings are revealed globally.
If only Putin stops his war and the world is back on peace again.. That alone will help so much.
The biggest threat to the world economy is elevated oil price for extended periods. Contemporary history shows, high oil price lead to worldwide economic recession.Russia exports oil, wheat, and other natural resources which is having their prices affected as well. Scalpers will come in to buy cheap from Russia and sell them at a higher price to other countries to avoid sanctions. This is making such goods more expensive. Another cause for inflation. Latest news is OPEC cutting oil production which will also jack up inflation if oil prices reach 100 a barrel.
Countries reopening everywhere now with people going crazy traveling.. Another source of spending making prices go up.
Hence Fed is not giving up on raising interest rates yet as long inflation doesn't go down. Hard to see it go down soon with the above factors. This is why some experts are predicting a recession soon.
When company growths get affected by recession (by too many jobless people, or people not earning enough to buy more of their goods or services), that's when their stock prices will tank. Can only confirm more as future earnings are revealed globally.
If only Putin stops his war and the world is back on peace again.. That alone will help so much.
This post has been edited by icemanfx: Apr 6 2023, 01:35 AM
Apr 6 2023, 01:33 AM

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