NOT A RECESSION! THIS IS THE CAUSE OF GLOBAL ECONOMIC CRASH IN 2023

NOT A RECESSION! THIS IS THE CAUSE OF GLOBAL ECONOMIC CRASH IN 2023

The cause of global economic crash. Investors are exposing the main risks that haunt global economic growth in 2023. They say hopes of a rally in the market are premature after this year’s brutal selling. Nearly half of the 388 respondents to the latest MLIV Pulse survey said a scenario in which growth continued to slow while inflation continued to rise would dominate globally next year. This condition created stagflation. The second most likely outcome is a deflationary recession, while an economic recovery with high inflation is seen as the least likely. The survey results herald a challenging year for risk assets after central bank tightening, soaring inflation and the fallout from the Russia-Ukraine war sparked the worst decline in equities since the global financial crisis. Against this gloomy backdrop and stocks having rallied in the fourth quarter, more than 60 percent of survey participants said investors worldwide were still too optimistic about asset prices. Buffalo International Fund portfolio manager at Kornitzer Capital Management Inc. Nicole Kornitzer says next year will still be difficult, Also Read: Bad! The Fed Warns Nearly 50 Percent Chance of US Recession Next Year “Certainly, stagflation is the outlook for [global economic growth] for now.” he said. Meanwhile, about 60 percent of participants expect the US dollar to weaken further a month from now. The weakness contrasts with last month, when nearly half of respondents said they would go to the Federal Reserve (The Fed) meeting in November long in the US dollar/ The greenback’s strength has weighed on several asset classes this year, including other currencies such as the euro and equities. growing market. The cause of global economic crash. A decline in the dollar could create many opportunities in an already sluggish 2023. Kornitzer reckons the US dollar will probably weaken throughout 2023. “Maybe not dramatically, but the trend will probably be down.” he said. All eyes are on the Fed, which enters 2023 with growth likely to be hampered further as rates remain higher for longer.

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