10X CAPITAL POT

10X CAPITAL POT

Share this post

10X CAPITAL POT
10X CAPITAL POT
Inflation, recession or market crash?
Copy link
Facebook
Email
Notes
More

Inflation, recession or market crash?

What the data suggests right now and how to navigate the pain.

Giovanni C.'s avatar
Giovanni C.
May 08, 2022
∙ Paid

Share this post

10X CAPITAL POT
10X CAPITAL POT
Inflation, recession or market crash?
Copy link
Facebook
Email
Notes
More
Share

The stock market has been going south for many weeks now. Fear of very high inflation has been the main cause. Why? Too much inflation triggers central banks to raise rates and to decrease liquidity in the economy. If they do this for too long or too fast, then a recession may be the price. And recessions equal “Bear markets”.

I have been optimistic on the stock market for a long time as coming out of the pandemic the economy has been recovering, companies were making lots of profits (and still doing so) and credit conditions were healthy.

A recession is always predicted by a deterioration of credit conditions. And during recessions the stock markets go down.

So what?

Best case scenario: the data about inflation starts to cool off and the Federal reserve starts to be more dovish (less hawkish), the economy avoids a recession and the Stock market starts going up again. This migth happen before September and as early as next week.

Worst case scenario: inflation data keeps looking “out of con…

Keep reading with a 7-day free trial

Subscribe to 10X CAPITAL POT to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
© 2025 Giovanni C.
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More