📑 Research Notes for 2022-08-08
This week, we look at the possibility of global stagflation, the BOE's rate hike and recession prediction, the blockbuster jobs report, and the consequences of Pelosi's Taiwan trip.
We conduct extensive investment research and share the most interesting content that we come across every week. Here is a curated list of this week’s top observations.
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Stagflation May Overwhelm the Global Economy.
While talk of a US recession has dominated markets, the more concerning question could be stagflation – when an economy experiences a period of high inflation with simultaneously stagnant growth. And, significantly, the symptoms are appearing not just in the US but throughout the global economy. Here’s everything you need to know about the prospects for stagflation.
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Bank of England Hikes Interest Rates, Predicts a Long U.K. Recession.
The Bank of England has hiked interest rate by 50 basis points - the largest rate increase in over 25 years. The central bank also predicted a recession that will last five quarters under the weight of soaring inflation.
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Jobs Report Makes Notion of Fed at Neutral 'Comical'.
Mohamed El-Erian, University of Cambridge Queens' College president and Bloomberg Opinion columnist, reacts to the July U.S. jobs report and says the strong data is "bad news for the Fed's credibility."
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U.S.-China Relations At A New Low After Pelosi's Taiwan Visit.
China's massive show of force against Taiwan is expected to begin receding after several days of military drills that encircled the self-governing island. Both Chinese and Taiwanese military vessels remain near the median line in the Taiwan Strait. The drills began after a visit to Taiwan by US House Speaker Nancy Pelosi that enraged Beijing. The military exercises saw Chinese aircraft crossing into Taiwanese territory, and missiles fired over Taipei. Taiwan's Premier said China was disrupting regional stability.
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Last Week’s Market Performance Heatmap
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Curated by Joseph Lu, CFA®
Joseph is the founder and a managing director of Conscious Capital Advisors, as well as a CFA® Charterholder.
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