Looking back and looking forward from November 2022
This quick note is to share thoughts on the market. Although, remember of course, that we have no crystal ball and so these thoughts are nothing more than informed opinion.
Inflation control is an extremely inexact and, to be frank, brutal affair. Raising interest rates “cools” the economy, but if the economy is not “hot” then it forces a recession. Recession, or the shrinking of the economy, reduces spending and that forces prices down.