Commentary
For investors, the answer is always stocks. The only question, is, which stocks. As the major U.S. stock indices head into a Bear market, professional money managers are telling their clients that the problem with their portfolio is they now have the wrong stocks.
Stocks are not always the best answer for most investors, as holding an overconcentration in stocks led to a blowout of their portfolio during the last two recessions. Investors and professional money managers are placing big bets on the Fed capitulating soon when they should be heeding the Fed’s warning.
The Fed has made it clear that they intend to bring the aggregate level of demand down to the level of supply. With the global economy mired in a massive pandemic-induced supply chain disaster, demand will have to decline substantially to get down to the level of supply….