In hisDaily 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.
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
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