• Clifford Bennett, Chief Economist at ACY


• 14.04.2022 05:00 pm
#stocks , Clifford Bennett has over 36 years of market trading experience and was named the 'World's most accurate currency forecaster' by Bloomberg New York. He has advised some of the world's largest organisations, billionaire investors, and political leaders and spoken at the prestigious APEC summit on reserve currency issues. Clifford is the Chief Economist at ACY Securities.

First of all I would like to wish everyone of all faiths a wonderfully Happy Easter period. I am a big believer in the joy of our different approaches and all they bring. Celebrating our differences and respective strengths. Faith is one of those. Happy Easter Everyone!

US markets on the day all looked to be making an early start on the Easter break. Rather than any real earth shattering economic event, exhausted market participants hanging on for a well earned rest, may just be the dominant financial market force of the moment.

We saw US Producer Prices hit a record level not seen since the GFC, and this will be an on-going theme. Some are suggesting are near the top in terms of inflationary forces. The very same people who were absolutely sure 5.4% had been the peak previously. I would take a grain of salt with any early calls for an end to the current global inflation spiral. The inflation tsunami continues to circle the globe.

Markets, as we all know only too well zig and zag, After nearly two weeks of steady US equity market selling, US dollar and commodity buying, some form of breather is due.

My view is to look for some consolidation around current levels across all market for perhaps 1-2 weeks. This could involve some reversal moments in the above mentioned markets. That is, small bounces in stocks and currencies, but the key point of the day is to remember to treat such movements with caution. Better still as opportunities to sell.

The war in Ukraine is going to last all of this year.

This means on-going supply disruption in both food and energy markets. Neither food nor oil supplies are easily replaced.

With all the socially responsible and green energy investment of recent years, little has flowed toward new fossil fuel development. Making a substitution for the loss of Russian energy supply ever more problematic.

The big question to increasingly ask, is to what degree ‘energy' could become a weapon of choice in coming months.

We have not seen the top in either energy or commodity prices. Big problems for the Fed and other central banks to persist well into 2023.

Clifford Bennett
ACY Securities Chief Economist.

The view expressed within this document are solely that of Clifford Bennett’s and do not represent the views of ACY Securities.

All commentary is on the record and may be quoted without further permission required from ACY Securities or Clifford Bennett.

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