“Once the layoffs start, we will be in a real recession, which will most likely start in the new year 2023,” Rind said. “The result of the last few years means that the savings of the population is still relatively good. I think that everything will change when the economy starts layoffs and the labor market goes back.”
As for the monetary policy of the US Federal Reserve, the expert considers it possible to change the course. “I think the Fed needs to moderate its zeal. I think we are already at a point where these gradual rate hikes are only making things worse and possibly exacerbating the recession next year.”
Rind believes that "expectations of smaller rate hikes" could have a positive impact on equity markets. “One of the things that really slowed the market down and contributed to most of the losses was obviously the rapid rise in interest rates and the impact that interest rates have on companies’ future cash flows in particular.”
In addition, the financial markets expert believes that gold should benefit from the recent crash in the cryptocurrency market, as investors were reminded of the advantages of the yellow precious metal. Now some funds may return to the gold market.