Runway for a Soft Landing?
Jack Janasiewicz offers his tactical take on the capital markets in this podcast recorded on December 9, 2022.
- Stocks rose in November as inflation appeared to be cooling – but as Federal Reserve Board Chair Jay Powell noted, one print does not make a trend.
- China’s moderation of its zero-Covid policies benefited emerging market equities, but the path to reopening is likely to be bumpy and nonlinear.
- At long last, the pipeline of disinflation we knew was coming from supply chain improvements, bloated inventories and shifting consumption finally began filtering into the official data.
- Powell indicated that the pace of rate hikes would likely moderate – but stressed concerns about the two-sided risk: overtightening vs. not doing enough.
- While the market continues to view recession in 2023 as the base case, we believe the odds of a soft landing remain higher than consensus appreciates.
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