{"id":63891,"date":"2022-10-21T11:04:53","date_gmt":"2022-10-21T16:04:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63891"},"modified":"2022-10-21T11:04:53","modified_gmt":"2022-10-21T16:04:53","slug":"cracks-in-the-world-economy-are-starting-to-show","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63891","title":{"rendered":"Cracks In The World Economy Are Starting To Show"},"content":{"rendered":"
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Cracks In The World Economy Are Starting To Show<\/a><\/h3>\n<\/header>\n
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Friend of\u00a0Fringe Finance\u00a0<\/em>Lawrence Lepard released his most recent investor letter this week, with his updated take on the monetary miasma spreading across the globe.<\/p>\n

For those that missed it, Larry\u00a0also talked with me on my podcast<\/a>\u00a0just days ago. I believe him to truly be one of the muted voices that the investing community would be better off for considering. He\u2019s the type of voice that gets little coverage in the mainstream media, which, in my opinion, makes him someone worth listening to twice as closely.<\/p>\n

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Larry was kind enough to allow me to share his thoughts heading into Q4 2022. The letter has been edited ever-so-slightly for formatting, grammar and visuals.<\/p>\n

This is Part 1 of his letter. Part 2 can be\u00a0found here.\u00a0<\/a><\/p>\n

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In the third quarter, virtually all asset classes went for a roller coaster ride \u2013 a sharp bear market rally in\u00a0 July and August, followed by a vicious sell off in September as the Fed continued its Hawkish tone at\u00a0 Jackson Hole in late August and then raised the Fed Funds rate in September to 3.00-3.25%. Recall that\u00a0 as recently as February 2022 Fed Funds was at 0.0-0.25%.<\/p>\n

Year to date through 9\/30\/22, the S&P 500 and Nasdaq are down -24% and – 33%, respectively. Gold and Gold Miners (GDXJ) are down -9% and -30% year to date, respectively.\u00a0 Bloomberg\u2019s US Aggregate Bond Index is down -15%. Only the Bloomberg Commodity Index (broad\u00a0 commodities like oil that are benefiting from inflation) is up year to date (+13.5%).<\/p>\n

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The Fed\u2019s hawkishness has caused an enormous amount of wealth destruction. As the chart below shows,\u00a0 US stocks and bonds have created a drawdown of $18 Trillion in the US equity and fixed income markets,\u00a0 far worse than 2008 and 2020\u2019s market value destruction….<\/p>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Cracks In The World Economy Are Starting To Show Friend of\u00a0Fringe Finance\u00a0Lawrence Lepard released his most recent investor letter this week, with his updated take on the monetary miasma spreading across the globe. For those that missed it, Larry\u00a0also talked with me on my podcast\u00a0just days ago. I believe him to truly be one of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,303,431,32086,534,33286,20223,3650,4318],"class_list":["post-63891","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-interest-rates","tag-lawrence-lepard","tag-monetary-policy","tag-qtrs-fringe-finance","tag-quoth-the-raven","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63891"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63891\/revisions"}],"predecessor-version":[{"id":63892,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63891\/revisions\/63892"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}