Mark Skousen, Editor of Forecasts & Strategies, gives his outlook for the stock markets, as well as what may happen to the economy if the Federal Reserve continues raising rates. *This video was recorded on July 12, 2023 FOLLOW MARK SKOUSEN: Forecasts & Strategies: Freedom Fest: Economics of Life Article: Twitter (@MarkSkousen1): FreedomFest 2024: FOLLOW DAVID LIN: Twitter (@davidlin_TV): TikTok (@davidlin_TV): Instagram (@davidlin_TV): For business inquiries, reach me at david@thedavidlinreport.com *This video is not financial advice. The channel is not responsible for the performance of sponsors and affiliates. 0:00 - FreedomFest 2023 2:10 - Inflation 3:50 - Fed rate hikes 5:40 - What drives the economy? 7:46 - Stock market 8:18 - Housing market 9:25 - Decline of poverty #investing #economics #stocks...(read more)
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Why Stocks Will Keep Rallying Despite Recession Signs By Mark Skousen As the economy faces headwinds and recession signals start flashing, many investors are worried about the fate of their stock investments. The uncertain global trade scenario, slowing growth rates, and inverted yield curve have led to concerns about an impending recession. However, despite these warning signs, there are several reasons why stocks are likely to keep rallying in the near future. First and foremost, market sentiment plays a significant role in stock performance. Even during a recession, not all stocks perform poorly - in fact, some sectors can thrive. If investors remain optimistic and continue to pour money into the market, it can create a positive feedback loop, driving stocks higher regardless of the overall economic conditions. Secondly, historically, stock markets tend to anticipate the future. They are forward-looking and often reflect investor expectations for the economy six to twelve months in advance. While economic data may currently suggest a recession is on the horizon, investors may already be factoring in potential stimulative measures by central banks or other government interventions. This anticipation can keep stocks buoyant. Another crucial point to consider is the loose monetary policy pursued by central banks around the world. In recent years, many central banks have pursued accommodative policies, cutting interest rates and providing liquidity to support economic growth. This easy money policy has been extremely supportive of asset prices, and as long as central banks continue this approach, it is likely to keep the stock market rally intact. Furthermore, corporate earnings remain strong. Even in a slowing economy, companies that have adapted their business models and focused on efficiency and innovation can continue to generate robust profits. Investors tend to reward companies that deliver solid earnings growth, which can help sustain the rally in stocks. Additionally, alternative investment options are limited. With interest rates at historically low levels, the fixed-income market offers meager returns. This lack of attractive alternatives can drive investors towards equities, creating additional demand for stocks and further propelling the market rally. Lastly, the wealth effect plays a crucial role. When stock markets rise, it tends to increase consumer confidence and supports consumer spending. As consumers feel wealthier due to their investments, they are more likely to spend, which in turn can help stimulate economic growth. This positive feedback loop between the stock market and the broader economy can provide support for stocks, even in the midst of a recessionary environment. While there are undeniable signs that the economy is facing challenges, it is essential to recognize that the stock market and the economy are not always perfectly correlated. Stocks can rise, even during a recession, on the basis of market sentiment, forward-looking expectations, loose monetary policy, strong corporate earnings, limited alternatives, and the wealth effect. Investors should remain vigilant and keep a diversified portfolio to mitigate risks and take advantage of potential opportunities. A careful analysis of individual stocks and sectors, as well as monitoring economic trends, can help investors navigate uncertain times successfully. By focusing on the factors that are likely to support the stock market rally, investors can manage their expectations and make informed decisions that align with their investment goals. In conclusion, while recession signals may be flashing, there are several reasons why stocks may continue to rally. By understanding the dynamics that shape the stock market and keeping a close eye on key factors influencing its performance, investors can position themselves for success and weather the economic storm. https://inflationprotection.org/mark-skousen-explains-why-stocks-will-continue-to-rally-despite-recession-indicators/?feed_id=126470&_unique_id=64d69ee495100 #Inflation #Retirement #GoldIRA #Wealth #Investing #adamsmith #business #businessnews #capitalism #capitalismvssocialism #davidlin #davidlineconomics #davidlinfinance #davidlininvesting #davidlintrading #davidlinyoutube #economics #economicsnews #economy #fed #federalreserve #Finance #financenews #financialnews #inflation #investing #jeromepowell #macroeconomics #markskousen #monetarypolicy #stockmarketcrash #stockmarketprediction #Stocks #thedavidlinreport #Trading #RecessionNews #adamsmith #business #businessnews #capitalism #capitalismvssocialism #davidlin #davidlineconomics #davidlinfinance #davidlininvesting #davidlintrading #davidlinyoutube #economics #economicsnews #economy #fed #federalreserve #Finance #financenews #financialnews #inflation #investing #jeromepowell #macroeconomics #markskousen #monetarypolicy #stockmarketcrash #stockmarketprediction #Stocks #thedavidlinreport #Trading
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