MarketWatch/Isabel Wang/6-23-2022
“‘We have been and remain in a ‘de-risking, defensive and de-rating’ mindset for 2022, as Fed hikes in the current downturn should create collateral damage, leading us to adopt a bearish stance on U.S. Consumer, Financials and Small-caps,’ said Manish Kabra, Societe Generale’s head of U.S. equities, in a Tuesday note. ‘But the committed fight against inflation looks set to trigger a domino effect, with the Housing and Credit markets looking like the next dominos to drop.’”
USAGOLD note: One cannot help but recall that the Fed’s tightening into a slowdown in the late 1920s led to the 1930s Great Depression. We will cautiously add that a Depression is not inevitable under these circumstances. At the same time, the financial earthquake warning from Societe General registers more ominously on the Richter scale than others we have encountered.
