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Are Markets Heading for Recession in June 2022?

Probably a question on everybody’s minds. Especially on those investing in various markets right now.

Just looking at the today’s news hitting the economy desks, one gets the impression we are really close to tipping the economy in recession:

 

Ukraine says troops hold out in Sievierodonetsk after last bridge destroyed

Ukraine still holds against the mightier Russia, but for how long? Read: this is going to be a long war and neither side is willing to give up. Read: sort of a pandemic situation, with things changing (too) slowly within the economies… And with half of its crops disabled, Ukraine is also unable to feed the masses in Africa and Asia, nearing the world’s course to a food crisis.

Oil prices rise as tight supply counters China COVID, recession worries

Oil prices rise again and again, despite all the push for alternative energies and climate changes. On top of it, China’s economy stutters – after all, who has the money to do anymore funny shopping when house prices are so high?

Bitcoin stems heavy losses but pessimism reigns in crypto markets

Crypto markets are again down, with Bitcoing losing two-thirds from prior year’s heights. Bottom reached? No one’s sure, with the major crypto player Celsius freezing funds from its operations.

 

As S&P 500 confirms bear market, most of its components look worse

After a 1% inflation in May 2022, US stocks and indices went down seriously. Inflation is the no. 1 threat to growth stocks – yes, those who propelled the markets to new heights in 2021. On top of it, the COVID stimulus has already made its way in consumption, thus companies cannot expect the same spending power again… not with the US inflation at 8.6%.

 

On top of everything, the FED will likely announce tomorrow its’ new interest rates. Analysts expect an increase of 0.5%, which looks most likely already priced in the stocks’ depressed quotations. Anything else on top of this… and we could see the slide into recession accelerating.

 

 

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