Fred Hickey, author of the influential High-Tech Strategist Newsletter, reckons that "the global economy is turning down". In a recent Barron's Roundtable, the US investor warned that stocks look "vulnerable". He points out that "numbers are weak" across all sectors and regions.
With QE2 coming to an end in two weeks he expects things get worse, which, in the end, will lead to more Fed intervention. "Given the criticism of QE1 and QE2, the Fed might have to use other tools to pump up the economy." But "Bernanke won't sit there and do nothing. He won't allow the US to become Japan II."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
What is Rachel Reeves’s plan for growth?The UK’s modern industrial strategy was published this week. How does chancellor Rachel Reeves hope it will grow the UK economy, and how successful will it be?
-
The best cities to live in for quality of life, salary and rentThe best city to live in is difficult to determine, but using myriad measurements it looks like it is certainly not London or New York. We find out what it is.
-
Do we need central banks, or is it time to privatise money?Analysis Free banking is one alternative to central banks, but would switching to a radical new system be worth the risk?
-
The Bank of England can’t afford to hike interest rates againWith inflation falling, the cost of borrowing rising and the economy heading into an election year, the Bank of England can’t afford to increase interest rates again.
-
Interest rates held at 5.25% againThe Bank of England has kept rates at 5.25% again, in a widely anticipated move. We look at what it means for your money - and what the Bank’s next move could be
-
Why did SVB collapse and what does it mean for investors?News California-based Silicon Valley Bank collapsed seemingly overnight, casting doubts over the future of thousands of tech and science startups in the US and the UK.
-
Cost-of-living crisis: a disaster years in the makingAnalysis The cost-of-living crisis has little to do with Brexit, climate change, Covid-19 or war, says Tim Lee
-
Financial calendar – what to expect in the week of 2-6 MayNews A selection of economic events to watch out for in the coming week, including a decision from the Federal Reserve on raising US interest rates, and German retail sales figures.
-
Are recession fears justified? Maybe it’s time to look on the bright sideAnalysis There's a lot to feel nervous about right now, and many people are worrying about an impending recession. But it's by no means certain, says John Stepek. There are still plenty of reasons to be cheerful.
-
The charts that matter: Fed becomes more hawkishCharts Gold rose meanwhile the US dollar fell after a key Fed meeting. Here’s what else happened to the charts that matter most to the global economy.
