LEGENDARY ECONOMIST ED HYMAN WORRIES ABOUT THE UNINTENDED CONSEQUENCES OF FED’S  RAPID TIGHTENING

December 9, 2022

Starting with WEALTHTRACK’s launch in 2005, we established an annual tradition, sitting down for a rare in-depth interview with Ed Hyman, Wall Street’s number one ranked economist for an unrivaled forty-two years. 

Hyman is Vice Chairman of Evercore, a leading independent investment banking and advisory firm where he is also the Founder and Chairman of its Evercore ISI division and leads its economic research team, which publishes what is considered to be must-read research by institutional investors all over the world. 

A year ago, Hyman and his team were monitoring the multiple “Factors Behind Unprecedented Nominal GDP Growth,” which included record-low short-term interest rates globally, surging acceleration in money supply, the doubling of the Fed’s balance sheet to nearly $9 trillion and the more than doubling of the Federal government outlays to $7 trillion. All of this money flowing into the financial system and economy led to a surge in corporate profits and a very strong stock market. 

The situation has almost totally reversed. Inflation has been surging, and the Fed is raising rates at a bigger and faster clip than ever before. As Hyman’s recent reports attest: “Fed Tightening (is) Already Having An Impact” and “Weakness (is) Rippling Through U.S. Economy.”  

WEALTHTRACK Episode #1924 broadcast on December 09, 2022
Listen to the audio-only version here:

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ED HYMAN


ACTION POINT

PREPARE YOURSELF FOR MORE CHALLENGING ECONOMIC AND MARKET CONDITIONS

  • The impact of monetary tightening occurs with one or two-year lags
  • The dramatic tightening we have experienced won’t be fully felt until 2023 or beyond
  • Tightening already hitting home buyers and developers
  • Investors feeling heat across the board
  • Bond prices have had a brutal decline
  • With the exception of energy, all stock sectors were down in 2022
  • More pressure to come as earnings expectations are lowered 

ONE INVESTMENT

POSITIVE ENERGY PROSPECTS

BUY SCHLUMBERGER  

Schlumberger NV (SLB)


STOCK MENTIONS

Apple Inc.  (AAPL)

Amazon.com, Inc. (AMZN)

Lennar Corporation (LEN)

Pfizer Inc. (PFE)

Schlumberger NV (SLB)


BOOKSHELF


FROM THE ARCHIVE

Ed Hyman from the WEALTHTRACK Archives:


WEB EXTRA

CLASSIC BUSINESS GIFTS

Legendary Wall Street economist Ed Hyman is a voracious reader. He recommends two investment classics as holiday gifts.


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