Investors should expect a recession in 2023 ━ Jason Trennert, CEO of Strategas Securities, a capital market company, said in an interview. He says there are very few instances in which the inflation rate got something like 8 per cent or 9 per cent where the FED (Federal Reserve System) was able to bring it down without causing a recession.
The last recession was seen in 1994, but it was a soft landing scenario, and the inflation got only 3 per cent.
In the 2023 recession, the earnings will fall about 30 per cent, and it will be a little difficult for common people, real estate, and others to survive and cope with the situation because of the higher inflation rate.
Trennert says, ‘We must go back to the roots of recession. We personally decided to close down the global economy with a $5 Trillion investment in fiscal spending.’ We are expecting good things to happen in future. According to Jason, the peace between Russia and Ukraine would help to halt the recession.
He believes that the FED is challenging. Having control over price stability is hard to achieve without a recession.
With this interview, it is expected that 2023 will be challenging for the sock market, investors and others. Let’s see what happens!