The next recession is likely to be around the corner. The US Federal Reserve has been increasing the interest rate for some time, and it is about to increase it again. This will have an effect on the rest of the world, including Canada's economy.
There are divergences between earnings and inflation that are not transitory. Those who stand to gain the most from these divergences will invest in businesses making passive income, causing an increase in price for this income even though the price of output does not rise. There are incentives for many people in doing this and as such, there may be a considerable oversight by decision makers and stakeholders. These first signs will likely be seen in the 2nd quarter of 2023, and drop further into 2026 as it is likely we see another recession by 2027 or 2028. For more information, please refer to the info-graphic below.
