Recession is challenging inflation as top fear among stock and bond investors

MarketWatch/Joy Wiltermuth/6-25-2022

cartoon image of an ostrich with its head buried in the sand

“It’s easy to want to duck for cover given the carnage seen this year in stocks and bonds, particularly with the Federal Reserve vowing to wage an unconditional battle against high inflation.”

USAGOLD note: The above headline identifies this week’s sentiment. Next week, it could be a completely different story should inflation once again pop up as the number one concern. A more logical approach might be to combine the two, call it stagflation, and recognize it for what it is – a very difficult environment for traders immersed in the way things used to be. Meanwhile, the Fed has decided to fight the inflation half of the problem – until, of course, recession hits with full gale force. Then it might pivot – once again. Gold has a history of successfully defending wealth against recession and inflation – one, the other, or both. The key is to do a little research and avoid entirely the temptation to hedge one without hedging the other. Please see: Defending wealth during a stagflation

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