Market Dip, Recession and Crisis
Looking at the market soar in first 2 quarters of 2023 marked one of the strongest bullish events in this century after a bear run. But looking at the current debt levels, heavy inflation and increased interest rates, one thing we can be sure of is that market correction is inevitable. This also provides investers an opportunity to make money in the long run as well. However, a recession or a hard crash is not expected.
The fed is trying to hold the inflation but demand&supply has it’s own corrective nature. Things will be bullish for the decade to come in my opinion. Why? Because entire globe is suffering financially. Rating US dollars to AA+ mean nothing as the same institution rates CAD AAA. On the othrr hand, Russia is using power of oil to fund it’s war and it will hit their economy quite harsh. The money flux will deteoriate EU financials as it has heavy dependency on Russia for most of its oil needs. China had it’s own crisis right now. All of these macro indicators determine the flux of money. US economy will be hurt but get stable in this decade. Long term investors can be protected but the same cannot be said for the short term investments as weaker businesses will weed out automatically.
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