Legacy’s Latest | The Market Has It Wrong – November 22, 2022
Hosted by: Brent Bunger and Richard Baer
Each and every day we walk in, the question of the moment is: “When is the Fed going to end the rate hike cycle?”
Talking heads and market experts hang on every word from a Fed governor or Chairman Powell himself, hoping for a clue as to when we will return to the gameplan of the past—low rates and massive liquidity.
They are asking the wrong question. We aren’t going back to the game plan in place since the great financial crisis of ’08. We may have a short period of lower rates possible if the current path of rate hikes leads us into a serious recession accompanied by significant job losses.
The Fed might back off for a while, much like Fed Chairman Paul Volcker did back in the early ’80s when his fight against double-digit inflation ushered in two recessions in a 3-year period…but easing will be temporary until inflation is under control.
The question they should ask is: “What will work in this new paradigm?” Stop hoping for the past to return. Look forward, as tremendous opportunities are borne out of dislocations.
In today’s program, Brent and Richard touch on the present but focus on what may be the opportunities arising out of the fight against inflation.
All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the article. The material has been gathered from sources believed to be reliable, however Legacy Capital Group California, Inc. cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Advisory services are only offered to clients or prospective clients where Legacy Capital Group California, Inc. and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Legacy Capital Group California, Inc. unless a client service agreement is in place. Securities offered through Lion Street Finanical, LLC. (LSF), member FINRA & SIPC. Investment Advisory Services offered through Legacy Capital Group California, an investment adviser registered with the SEC. Legacy Capital Group California, and LSF are not affiliated. The opinions expressed are those of the authors and may not reflect those of LSF.