Stock Markets Reach New Highs Despite Looming Economic Storm Clouds
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Stock markets are at record highs despite major economic and geopolitical risks like interest rate hikes, soaring debt defaults, changes in work habits, and global conflicts.
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The Fed's aggressive interest rate hikes have caused losses for banks and threaten a regional bank crisis like the one in 2022.
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High interest rates combined with changes in work habits are badly hurting the commercial real estate market, risking loan defaults.
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The Russia-Ukraine war and tensions with China raise severe geopolitical uncertainties.
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Markets seem irrationally exuberant, ignoring risks resemblant of pre-2008 or pre-WWI bubbles.