‘Soft Landing’ Presents a Hard Challenge
As the Federal Reserve aims for a “soft landing,” market and economic conditions aren’t going to make it as easy as the central bank is signaling.
Consumer confidence? In the tank. Investor sentiment? Over 58% bearish. Inflation? At 40-year highs and once again outpacing wages.
Add to that the prospect of a recession by year’s end and the Fed’s target of a soft landing is looking about as gentle as a bull in a China shop.
According to Fed Chair Jerome Powell, “If demand can move back down, inflation can move back with it.” He added, “There’s no guaranteeing that, though.”
We are seeing some signs of demand decreasing. A $5/gallon nationwide average for gasoline will do that. So will $34 for a plate of chicken wings and 6% 30-year fixed mortgage rates.
But as market turbulence continues, our editors and analysts are dialed in with ideas of how investors can capitalize on current conditions. Here are this week’s top stories from your favorite Weiss Ratings experts.
The Bureau of Economic Analysis will release its next gross domestic product (GDP) report on June 29. If the data shows negative growth, the U.S. will officially be in a recession. This week, Managing Editor Jordan Chussler discusses safe-haven assets, and why investors should be preparing — not panicking — as the economy continues showing telltale signs.
Here at home, inflation is at a 40-year high, but it's also growing worldwide. In this week’s segment, Financial News Anchor Jessica Borg interviews Senior Analyst and lifelong globe-trotter Tony Sagami during his visit to Sri Lanka. Tony talks about how that country's economic conditions correlate to the U.S., and several investments that are tailor-made for the global demands of the day.
In March 2020, COVID-19 caseloads skyrocketed. Airports, train stations and cruise terminals were shuttered. Layoffs exploded. Businesses and consumers went into full lockdown mode. Last week, U.S. stocks plummeted the most in any week since then. Senior Editor Mike Larson reports on soaring inflation and interest rates are increasingly pointing to the need for “Safe Money” strategies.
This country is obsessed with debt, and 61% of Americans are living paycheck to paycheck. And with people being forced to financing their lifestyles with debt, Senior Editor Tony Sagami says investors can benefit through these lender services.
Kellogg is splitting into three business divisions, and one division might surprise investors: plant-based foods. Editorial Director Dawn Pennington discusses how the company’s MorningStar Farms products — and other companies’ plant-based products — aren’t a trend, but rather a high-growth opportunity for investors.
According to Dr. Martin Weiss, a rogue wave is about to strike at the core of the American economy. And this time, the big banks won’t get bailed out. With a potentially associated market crash, here’s how you can find substantial gains as the economy turns sour.
Until next week,
The Weiss Ratings Team