Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

In the Fed, we trust

  •   VanEck
  •   13 October 2022
  •      
  •   

The Fed’s narrative is unambiguous. The Powell pain is coming and the question of a soft or hard landing is now ‘soft-ish’ or hard. That is, it is going to be harder than soft. Market commentators are now debating the type of probable global recession. During a recession, earnings compress. To date, earnings revisions have been soft-ish. Price to earnings ratios need to therefore re-rate. To get inflation down, the Fed needs to loosen the labour market to get wage growth down. Unemployment invariably will rise. If a recession for 2023 is the base case, be prepared for a plethora of opportunities to surface. It is in these times that astute investors buy from the pessimists.

Download the full paper here

  •   13 October 2022
  •      
  •   

 

Leave a Comment:

banner

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.