A Recession Is Nowhere In Sight

Published on

In his Daily Market Notes report to investors, while commenting on a recession, Louis Navellier wrote:

Mask-Off Rally

The masks are off on US flights/airports and Uber thanks to a Florida federal judge ruling that the CDC had no authority to mandate a national mask policy. Re-opening demand sentiment is energized. Airlines and travel stocks rally. Stock indexes are green across the board.

Get The Full Henry Singleton Series in PDF

Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q1 2022 hedge fund letters, conferences and more

Despite interest rates continuing to grind higher, the NASDAQ has got legs this morning after an initial dip into the red.

Positive Growth

Today, the IMF joined the World Bank in cutting global growth forecasts to a still positive 3.6% for both 2022 and 2023, down 0.8% and 0.2% from previous forecasts. They also forecast 5.7% annual 2022 inflation for developed countries and 8.7% for emerging economies (+1.8% and +2.8%), citing the dislocations created by the Ukraine conflict, Covid lockdowns in China, and soaring energy costs. But the real point is that everyone still sees positive growth, which will support earnings.  

No Recession in Sight

A recession is nowhere in sight, mid-single-digit inflation and interest rates are not enough baggage to derail a post-pandemic reopening economy.

Crypto has bounced with a risk-on sentiment; Bitcoin +5.7%. Gold is down $25, Crude oil down 5%, natural gas down 10%. Transportation and banks are higher.

Hopefully, the earnings season will reinforce that growth prospects remain solid, with the bias remaining for energy, commodities, and travel-related.

North of the border, Canada has banned foreign home buyers for two years to cool their housing market and added new taxes to anyone who buys and sells a house in less than a year.

Coffee Beans

U.S. airports have been getting quite busy lately, with daily passenger throughput exceeding 90 percent of 2019, i.e. pre-pandemic traffic in April 2022. At the onset of the pandemic, daily passenger throughput fell as low as 100,000 in April 2020, before slowly climbing back to its current level. As of April 17, this year's average daily passenger throughput stands at 1.81 million. Source: Statista. See the full story here.