First Bermuda Securities Cautions about U.S. Economy and Investment Strategies
7 April, 2023
The March jobs report showing healthy growth of more than 230,000 in the number of U.S. jobs filled means the Federal Reserve will hike rates again in May 2023. Inflation remains high at more than 5% per annum against the Fed’s target of 2%. While bank and non-bank lending has tightened quickly and considerably since the closings of Silicon Valley, Signature and Credit Suisse, economic contraction has not set in to the extent needed to satisfy the Federal Reserve. The result will be Fed over-tightening in money supply and an accelerating drop off towards economic recession later this year. Investors should undertake to (i) bias their portfolios even more towards cash and liquid investments than they have to date, and (ii) ramp up their searches of existing credit fund, private equity, and venture capital portfolios held by institutional investors that will be looking to curtail exposures to companies and assets that will not perform well through the course of a severe, two year recession.
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About First Bermuda Securities Ltd.
First Bermuda Securities Ltd. (“FBS”), an exempted Bermuda company, is a strategic advisory, compliance consulting and listing services firm based in Hamilton, Bermuda. Please contact us or visit our website at www.fbs.bm for additional information. We welcome proposals to engage for mutual benefit and promise a prompt and confidential response.
