Dreadful Davos – The World Economic Forum Meeting
China was one of the topics discussed at the annual WEF meeting in Davos, Switzerland, but that wasn’t it. Every year, the World Economic Forum hosts a meeting in Davos for business leaders, economists, and even policymakers to discuss the state of the global economy along with the factors involved. A lot of things occurred at the forum, but there were a few highlights that must be covered.
First, there seemed to be a high amount of pessimism between those who attended the forum regarding the future of the economy. Fears of a recession continue to increase even among the big banks, who have set aside a combined $4 billion in preparation for one. This pessimism, however, seems to be countered from optimism regarding things like global inflation peaking, placing sentiment in a weird spot.
On the political side, controversial senators Joe Manchin and Kyrsten Sinema were present, furthering their controversial stance on the filibuster. When talking about policymaking, they both made a comment about agreeing with each other on not removing the filibuster before high fiving each other, a move that didn’t sit well with their Democratic constituents.
For now, economists are monitoring ongoing and possible world events that could affect the economy in a major way. Future events include a speculative conflict between China and Taiwan or the US defaulting on their debt due to partisan hackery that is preventing action from being taken. Ongoing events include any escalation of the Russian invasion of Ukraine and the reopening of China that we discussed earlier.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.