The Sector Holds the Key to an Economic Turnaround
Apr 13th, 2009 | By Charles Delvalle | Category: Chart of the DayWhat sectors rise when the economy begins to emerge from an economic downturn? The answer may surprise you.
What sectors rise when the economy begins to emerge from an economic downturn? The answer may surprise you.
Right now, the conventional wisdom seems to be that the United States is looking at a “U-shaped” recession and recovery. Output declined gently in the third quarter, is dropping sharply now and will continue dropping sharply in the first and possibly the second quarter of the New Year, finally bottoming out and beginning a slow recovery thereafter.
The finger of blame for this crisis should be pointed at the Fed, says Ed Bugos. Its interventionist activities created an unsustainable bubble. A recession is just the process of correcting these mistakes. Worse still, Ed says the Fed’s current actions are proof that it is not about to change this approach. Expect more inflation, and a bull run in gold.