J.P. Morgan Indicates Softer Inflation Landing: Recession, Investments, Infrastructure, and College Level Human Capital

Exciting times in the news as the world's economy adjusts and shifts to a post COVID world! It looks like some recession indicators offered by JPMorgan may not be as strong as expected. This is the soft landing many are hoping for as the Fed could have possibly acted in a way that cooled the flames just enough to let inflation simmer down without pushing the U.S. into a major recession. 

First, let us sort of discuss the landscape. Europe is expected to go through some type of low level recession but that remains to be seen. The U.S. I suspect will do better than many other nations (i.e. a good place to invest with a changing fundamental economic landscape.). It might be a good time for European leaders to start working more closely with the U.S. on shared economic goals. 

There is an interesting article Recession or resilience? Here’s how the U.S., Europe, and Asia stack up that discusses how the U.S. may be resilient during 2023 and China has some structural issues. What I'm concerned with is the 2023/24 interchange as strategies developed during COVID are fully implemented in the U.S. (i.e. digital economy in the U.S., infrastructure, CHIPS, etc.) and how structural limitations could hamper Chinese growth (i.e. not being being the only or best place to invest.)

Recession impacts everyone within an economy and few can escape all of its fallout. I suspect the richer you are the more shielding you have as you don't need to budget for things like groceries but you might need to budget your 3rd or 4th home. 🤷 

College students graduating during a recession get hit very hard. Recession Graduates: The Long-lasting Effects of an Unlucky Draw Helping college students get employed right away in meaningful jobs is helpful throughout their careers. Likewise, ensuring we are graduating college students with the right skills is helpful.  

As a side note:  The energy sector may have some good investments. Yippie! I keep my eye open for some investments. Not that I have a lot to invest but you know just a little cookie jar stuff. 

Global Economy May Avoid Recession as Inflation Risks Ease - J.P. Morgan