Lyn Alden is a macroeconomist and investment strategist. In this interview, we look forward to 2023. What is happening to the economies of Japan and China, whether they are in recession or not, and how will investments including Bitcoin perform in the year ahead?
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2022 was the year the chickens returned to their roost. Across Europe he spent more than 70 years of relative peace, resulting in politicians falling into a false sense of security and cold realism replacing ideology. Then the wisdom of Russia invading Ukraine and assimilating the energy market beyond the old Iron Curtain came into sharp relief. China has likewise sent belligerent signals to the West. Retreat and resilience soon gave way to cooperation and efficiency.
The supposed certainty that has driven the global economy for generations has vanished in real time. The economic impact was sudden. Supply he chains were stressed, goods were scarce in all sectors and inflation changed dramatically. Excessive sovereign debt limits government options. We are now in a central bank worst case scenario: high inflation, high debt and low growth. Developed countries like Japan are now in a predicament. A global recession is looming.
So how do we prepare for 2023? where should we put our money? According to Lyn Alden, navigating this market is not easy. When a prominent investment strategist talks about minimizing losses, we find ourselves in unfamiliar territory. Yet there are still reasons to hold on to hope. The world will not collapse in 2022. China’s economy should recover.
It will take time for the world to reorganize to fit the new rules of the game. Onshoring and durability will require significant investment. Debt levels make it difficult to raise the necessary funds. At the same time, we are in a period of stagnation and volatility can occur at certain moments. Governments need to navigate choppy waters. Investors should keep an eye on the market and know where the lifeboats are.