fbpx
Wednesday, September 27, 2023
  • Login
  • Register
Southern Boating
  • Boats
    • Center Consoles
    • Dual Consoles
    • Motoryachts
    • Power Cats
    • Sport Cruisers
    • Tenders & Ribs
  • Destinations
    • Bahamas
    • Caribbean
    • Pacific
    • U.S. Atlantic
    • U.S. Gulf
  • Engines
    • Engine Buyers Guide
  • Maintenance
    • DIY
  • Electronics
  • Lifestyle
    • Food
      • Drinks
      • Appetizers
      • Entrées
      • Dessert
      • Holiday
  • Gear
  • Shop
  • Web Reader
  • Subscribe
  • Advertise
No Result
View All Result
  • Boats
    • Center Consoles
    • Dual Consoles
    • Motoryachts
    • Power Cats
    • Sport Cruisers
    • Tenders & Ribs
  • Destinations
    • Bahamas
    • Caribbean
    • Pacific
    • U.S. Atlantic
    • U.S. Gulf
  • Engines
    • Engine Buyers Guide
  • Maintenance
    • DIY
  • Electronics
  • Lifestyle
    • Food
      • Drinks
      • Appetizers
      • Entrées
      • Dessert
      • Holiday
  • Gear
  • Shop
  • Web Reader
  • Subscribe
  • Advertise
No Result
View All Result
Southern Boating
No Result
View All Result
Home Marketgauge

A Moment of Truth

June 22, 2022
in Marketgauge
0
A Moment of Truth

Investing and stock market concept gain and profits with faded candlestick charts.

585
SHARES
3.3k
VIEWS
Share on FacebookShare on LinkedInShare via Email

A Moment of Truth.

Ways to Help You Deal With A New Reality

The truth can be difficult to hear.
Telling the truth is also hard when the message is not what the recipient wants to hear.
Dealing with the truth is even harder, especially when it’s unexpected and disappointing.

This week, investors had to deal with a heavy dose of truth about the state of the economy. Based on the markets’ response, it was painfully unexpected and disappointing as demonstrated by…

…S&P 500 down -8.7%
…NASDAQ down -9.4%
…Russell 2000 (IWM) -10.8%.

Why?

Over the past few weeks, Jerome Powell and Janet Yellen have gradually admitted that they got the inflation story wrong and backtracked on their “transitory” narrative.

They’ve not only flipped their transitory inflation narrative but also taken an aggressively hawkish point of view focused on bringing down runaway price hikes even if it risks the “R” word.

In our opinion, they’ve been forced to change their position because 90% of Americans say inflation is their number one concern.

Even a rational ‘data dependent’ Fed governor can only second-guess trending inflation data for so long.

So a somewhat unexpected and arguably disappointing moment of truth occurred on Wednesday at 2:15 EST when the Fed raised the key lending rate by not .50%, but an impressive 0.75%!

This is impressive because it is the largest one-time increase since 1994.

Plus, they broadcasted that they were likely to continue to pump the economic brakes at upcoming meetings throughout the Summer and into the Fall. All the while acknowledging their actions will run the risk of causing a recession.

Was It Enough?

0.75% is historic, however…

There were a handful of economists and asset managers that were pushing the Fed to get even tougher and raise the lending rate by 1% – 2%! They feel a bigger move was needed to let the world and the markets know they would do anything to fight insidious inflation.

The market initially liked the Fed’s recent hawkish action, as demonstrated by its rally into the close on Wednesday.

Unfortunately, after investors had 12-24 hours to consider the reality of the situation (the hard cold truth), Thursday the markets sold off and added to the rout that occurred on Monday. Between those two days the markets shed 5% and sent the markets to new lows for 2022. The S&P 500 and the NASDAQ went back to prices we last saw in the 2020 lockdown market deep correction.

Whether from the news media, the Federal Reserve or The Treasury Secretary, the truth about the state of the economy has changed. There is a new reality and narrative. These truths will likely permeate the economy going forward throughout 2022 and well into 2023:

Click Here To read about these 8 new truths and the 9 things you can do to protect your investments and possibly prosper during these difficult economic times

Recommended

An image of The iconic Riverwalk in Wilmington North Carolina

Wilmington, North Carolina

November 1, 2013
3.3k
Frigibar Bench-style Freezer & Refrigerator

Frigibar Bench-style Freezer & Refrigerator

March 1, 2014
3.3k

Don't miss it

A center console turns on open water while sporting Honda's New BF350 Outboards
Engines

Introducing Honda Marine’s BF350 Outboard: V8 Power Meets Premium Performance

September 21, 2023
3.4k
Man holds stop sign covering his face
Marketgauge

Will The Fed Finally STOP?

September 20, 2023
3.3k
Highfield’s Sport 660 (21’ 4” LOA; 8’ 6” beam)
Boats

Highfield Boats Unveils New Models at Exclusive Michigan Event

September 19, 2023
3.9k
Deena Lippman Sea Bass Image
Featured

Female Anglers Rise Up: A New Trend in American Fishing

September 15, 2023
3.7k
Oil barrels in front of a graph showing increases
Marketgauge

Could Higher Oil Prices Throw The U.S. Into a Recession?

September 13, 2023
3.5k
The Ocean Alexander 28E Cuts across deep blue waters
Boats

The Ocean Alexander’s 28E: Revolutionizing Yachting with Modern Luxury

September 12, 2023
5k
Facebook Instagram TikTok Youtube LinkedIn

Navigation

  • About Us
  • Advertise
  • Subscribe
  • Careers
  • Contact Us
  • Privacy Policy
logo

1591 E. Atlantic Blvd, 2nd Floor
Pompano Beach, FL 33060
Office: +1 (954) 522-5515
Fax: +1 (954) 522-2260
Contact us: info@southernboating.com


Newsletter

Subscribe to our mailing list to receive the best in boating weekly direct to your inbox!

No Result
View All Result
  • Boats
    • Center Consoles
    • Dual Consoles
    • Motoryachts
    • Power Cats
    • Sport Cruisers
    • Tenders & Ribs
  • Destinations
    • Bahamas
    • Caribbean
    • Pacific
    • U.S. Atlantic
    • U.S. Gulf
  • Engines
    • Engine Buyers Guide
  • Maintenance
    • DIY
  • Electronics
  • Lifestyle
    • Food
      • Drinks
      • Appetizers
      • Entrées
      • Dessert
      • Holiday
  • Gear
  • Shop
  • Web Reader
  • Subscribe
  • Advertise

© 2023 Southern Boating Media

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Don't Miss Out

Get weekly content updates to stay informed about the best boating and yachting news.

Don’t miss out on this Special Offer

Only 1 Dollar Per Issue!

Get Yours Here

(Billed Annually for our Digital Subscription Only)

Don’t miss out on this Special Offer

Only 1 Dollar Per Issue!

Get Yours Here

(Billed Annually for our Digital Subscription Only)

Don’t miss out on this Special Offer

Only 1 Dollar Per Issue!

Get Yours Here

(Billed Annually for our Digital Subscription Only)

Enjoying our Content?

Get it delivered weekly to your inbox! Dive into Your Fix of Adventure with the Latest in Boating, Yachting, Fishing, Gear Reviews, Exotic Travel Destinations and Lifestyle. Don't Miss Out, Sign Up Today!

Before You Go

Set Sail With Us! Dive into Your Weekly Fix of Adventure with the Latest in Boating, Yachting, Fishing, Gear Reviews, Exotic Travel Destinations and Lifestyle. Don't Miss Out, Sign Up Today!

  • About Us
  • Advertise
  • Subscribe
  • Careers
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertise
  • Subscribe
  • Careers
  • Contact Us
  • Privacy Policy