Nov 4, 2022
Summary:
How much lower can markets go? Perhaps the answer is in the futures
market. To better understand the trends being exhibited in futures,
I sit down and chat with Phillip Strieble, the Chief Market
Strategist of Blue Line Futures. He explains that the Fed and
central banks are not going to stop tightening any time soon, and
these decisions are made retrospectively. Using data of the past to
pave the way for the future is not always successful, and we can
expect to see rates rise until late 2023/early 2024. Tune in for
more insight.
Highlights:
-We are still in the midst of a tightening cycle; the Fed and
central banks will continue to over-tighten into the new year
-Things are essentially going to go from bad to worse
-The GDP increased by 2.6%, but this data is in the rearview
-The Fed bases their decisions with raising rates on the past
-The unemployment rate is going to continue to tick up
-Will the Fed be successful in bringing down inflation?
-Energy costs in the UK will be up in the winter; in turn, the
costs of other goods have to go up
-The last quarter of 2023/first quarter of 2024 is when the Fed is
expected to finally cut rates
-There are a lot of things we can do to get oil prices lower
-With the environment, we’re not going to see real change unless
other countries around the world are involved as well
Useful Links:
Financial Survival Network
Blue Line Futures