Seeking Alpha/CFA Institute/8-12-2022
“The eye of a hurricane is a deceivingly perilous place. Those lucky enough to enter it unscathed may enjoy a well-deserved respite, but the blue skies and calm winds also create a false sense of security and encourage complacency. Some people may even be convinced that the storm has passed. The truth, however, is that the eye offers only a brief intermission, and the worst is yet to come.… So when will the second wall of the monetary hurricane hit? It is impossible to tell. The Fed may even defy the odds and orchestrate a soft landing. But if the storm comes, beware the Ides of October 2022. Not only will the Fed’s tightening cycle be in its late stages, but October is a notorious month for financial panics.”
USAGOLD note: The DFA Institute hoists an early hurricane warning flag as peak inflation becomes the fashionable analysis in the financial press. October is the month when markets have been known to go bump in the night.
