2022 may bring more bad news for US markets after a poor first half

• Recession is the looming threat that investors have overlooked for months.
• Bank survey of clients to 4.11% in the recession predicting model of the New York Federal Reserve.
• The first six months were full of surprises, including inflation and largest selloff in bonds in decades.

As per media sources, US markets are beginning to fear they are not even halfway through the year 2022’s bad news.

As per the Wall Street Journal, the first six months were full of surprises, including inflation, the largest selloff in bonds in four decades, a collapse in tech stocks rarely matched in history, and the implosion of cryptocurrencies.

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Recession is the looming threat that investors have overlooked for months. However, it is unknown if the economy would experience a downturn or remain stable. Attempts to assign a likelihood range from 90 percent in a Deutsche Bank survey of clients to 4.11 percent in the recession predicting model of the New York Federal Reserve.

While investors are now focusing on the possibility of a recession, investors in the United States could also be affected by global dangers.

Japan may eventually be compelled to allow bond yields to rise, which would draw back capital that Japanese investors have poured abroad.

“In Europe, the central bank has promised a new plan to support Italy — but we’ve seen this show before. If it follows the trend of too little, too late, the eurozone debt crisis could recur, for which the markets are unprepared “The Wall Street Journal reported.

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Almost every economic conclusion is likely to be unexpected. As the recent economic panic subsides, equities should perform well if the economy experiences a soft landing.

According to the analysis, if there is a recession, there could be a substantial loss to come, as only the recent decline appears to be tied to the recession risk.