Prepare for things to get worse from here.
That’s the simple yet direct message from Federal Reserve-watcher Axel Merk.
Axel travels in the same circles as past & current Fed leaders. And he’s quite concerned about the aggressive pace of the central bank’s interest rate hikes.
Combined now with Quantitative Tightening, Axel fears they are slowing the economy far more than needed, which will result in an unnecessarily deep & grinding recession in 2023.
Similarly, he sees a new bottom for the markets ahead in the new year, too.
So don’t get too comfortable here at year-end thinking the worst is now behind us.
It doesn’t seem so.