Forward Guidance cover image

Forward Guidance

Europe and China: Already In Recession | Paul Hodges

May 26, 2022
01:23:48

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Quick takeaways

  • The world is entering a period reminiscent of the 1970s, with high energy prices, inflation, and geopolitical tensions, highlighting the challenges faced by the global economy.
  • Interest rate hikes indirectly impact supply by reducing demand, and as interest rates rise, the economy can expect to experience challenges and potential housing market crashes.

Deep dives

Current State of the Global Economy

The global economy is facing significant challenges as central banks' policies of the past 20 years no longer guarantee stability. With inflation on the rise and high debt levels, the world is entering a period reminiscent of the 1970s, with high energy prices, inflation, and geopolitical tensions. Central banks' efforts to support financial markets are proving ineffective, highlighting the disconnect between financial indicators and the real economy.

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