This from BCA Research emphasizes that "catch-22" we keep referring to herein:
"Economic growth will weaken in the coming months, yet monetary authorities worldwide will be reluctant to ease policy.
This state of affairs foreshadows a clash between markets and policymakers in the months ahead."
"...weak growth yet still high inflation. Due to the latter, the Fed will not cut rates until financial conditions tighten considerably and employment contracts. Such a stance from monetary authorities is bound to produce another bout of volatility in financial markets this year."
Again, makes for a very messy risk/reward setup right here!
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