The Fed has never raised rates during a recession, and we expect stock markets to drop another 50% – Todd ‘Bubba’ Horowitz

Todd “Bubba” Horowitz, chief strategist at BubbaTrading.com, said the Fed has no room to focus on and cut rates, which is why they are raising rates during this recession.

The US real GDP in the first and second quarters of 2022 was negative. This indicates a technical recession, which is two consecutive quarters of lower GDP.

“[The Fed] It raises rates during a recession,” Horowitz said. “Never in history…there is a political agenda behind all of these things that are happening, which is to try to create The Great Reset.”

The Great Reset is the World Economic Forum’s plan to implement stakeholder-based governance and green energy infrastructure. Opponents of the Great Reset claim that the transfer of assets from the middle class to the wealthy is a veil.

“The [Biden] “Management is looking forward to getting the great reset,” Horowitz said. “There will be no middle class.”

Horowitz spoke with David Lane, broadcaster and producer at Kitco News.

Jackson Hole

Horowitz’s comments come after Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Symposium in Wyoming. Powell’s hawkish tone was evident, with the Fed chair saying the Fed was taking “strong and quick steps” to bring down inflation.

“His notes are those of an asshole,” Horowitz said. “They should have raised rates all the time, going back to 2013… [Powell] He said [last year] This inflation was temporary, which everyone in the world knows was a bunch of rubbish.”

The Federal Open Market Committee will hold its next meeting in September, and Horowitz said they would raise interest rates by “1 percent,” but said the Fed would fail to tame inflation.

“[Powell] He tries to walk away from what will happen, which would be hyperinflation,” Horowitz explained. Wait until the price of oil starts to rise again. What do you think will happen to inflation next? We will have food shortages this year. We will see food riots in many countries.”

According to the Food and Agriculture Organization, food prices are still high compared to 2021, although they peaked in May of 2022. Climate events, such as droughts across Europe, may drive up food prices.

stock to crash

The S&P 500 is down 15 percent over the year. Horowitz noted that stocks are in a bear market, and that stocks will continue their downtrend.

“Overall, I would expect to see a 50 to 60 percent reduction in these markets,” he said. “If anyone looks at their finances, they can definitely see the downturns and they’re watching their spending.”

However, Horowitz mentioned that there are opportunities for investors in this market.

“If you were just trying to trade the market, I would buy commodities,” he said. “If I’m investing, I don’t have a problem with stocks being weak. I’ll look for some value to run there.”

For Horowitz’s gold price forecast, watch the video above

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