Tuesday, September 1, 2015

Stocks are sending a recession warning

Stocks are sending a recession warning



This is an excellent article about why the stock market decline could get a lot worse.  We faced a similar situation in August-September of 2011 although it later turned positive because Congress raised the debt ceiling and the Federal Reserve helped out.  This time may be different if we don't get the help we need.



Another reason that this time may be different is that we are coming off the top of a multi-year bull market whereas we were still rising from the bottom of a bear market back in 2011.  Also, China cannot help us now either.  The commodities boom of past years is over.  Oil and natural gas might rise some, but copper, gold, and steel will probably remain depressed.  Cash is king again, and profits in stocks should be taken quickly before they evaporate.


No comments:

Post a Comment