The US Federal Reserve’s subsequent assembly is rapidly approaching, and traders have questions in regards to the financial system.
Chief amongst them is whether or not the nation is heading towards a recession. Talking to the Investing Information Community, Marc Lichtenfeld, chief revenue strategist on the Oxford Membership, stated he is been backing away from that forecast for a while.
For one factor, US unemployment is close to document lows whereas wages are rising. “It is troublesome to have a recession with a state of affairs the place all people’s working and getting paid extra,” he famous. For an additional, the inventory market has been scorching in 2023.
“Usually talking, if all people coming into this 12 months was very frightened a few recession, after which the market takes off the way in which it has, that is a powerful sign that we might not get that recession that we’re all anticipating,” Lichtenfeld stated.
Nonetheless, different indicators recommend a recession is certainly on the horizon. These embody the inverted yield curve, in addition to a falling Chinese language producer value index. “No matter what the trigger is, if these costs proceed to come back down that must also convey costs additional down within the US. At this level it is a bit of troublesome to see precisely what impact that may have,” he stated.
Emphasizing that he is not a permabull, Lichtenfeld stated he is bullish on gold and most metals on this surroundings.
“Proper now I’m bullish on gold. The primary cause is the US greenback has been falling. We had been close to 20 12 months highs not that way back, but it surely has been falling fairly quickly over the previous couple of months, and so gold is a good hedge in opposition to that,” he famous. “Additionally, despite the fact that inflation is coming down it has been considerably greater, and simply generally for the long run gold is an efficient hedge in opposition to inflation. So in case you do consider that there is nonetheless some inflation left to be labored out, then that is one more reason to personal some gold.”
Watch the interview above for extra of Lichtenfeld’s ideas on different commodities, his technique for investing in dividend shares and the place he sees essentially the most enticing dividends in the mean time.
Remember to comply with us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the knowledge reported within the interviews it conducts. The opinions expressed in these interviews don’t replicate the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.
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