Benderly Economic Insights
Wed 25 May 2022 - 15:00 BST
Economic growth/employment/wage interactions buffer economy from recession
An unprecedented safety net for growth - $3-4 trillion of extra or excess deposits
Inflation still mostly driven by pandemic idiosyncrasies, commodities and supply-chain disruptions
Commodity-based inflation boosts S&P500 sales, earnings and margins
Slower economic growth but no recession in 2022
Recession could occur in 2023 or 2024, but a recession is not inevitable
Slowing inflation
Very strong S&P500 sales and earnings, margins will stay high, operating EPS to $275-$300
Interest rates too low unless inflation slows back to 2%