All Posts Tagged With: "US recession"
The 4 Best Securities to Hold in the Coming Global Recession
The International Monetary Fund (IMF) has downgraded world growth to 3.9% this year, from last month’s estimate of 4.1%. Next year’s outlook is also down - from 3.9% to 3.7%.
The Sovereign Society’s Eric Roseman predicts a far harsher global outlook. He says the world economy is staring down the barrel of the worst recession in 20 years.
This means it’s time to shift your focus to the securities that can protect your wealth from deflation. Eric says gold, high-quality Treasury bonds, non-financial A and AA corporate bonds and the U.S. dollar are your best bets…
Two Reasons Why 3Q U.S. Growth Will Disappoint
Addison Wiggan and Ian Mathias in Agora Financial’s 5. Min Forecast have already warned readers about the risk of taking yesterday’s 3.3% rise in U.S GDP figures at face value. Here, Charles Delvalle at Investor’s Daily Edge says the government’s economic stimulus checks and a weak dollar made U.S. growth seem more impressive than it really is. Don’t expect 3Q data to be quite so favorable…
Charles Delvalle Says Get Ready for Deflation in Asset Prices
Big banks don’t trust each other in the post-Bear Stearns market, and lending across the financial system is drying up.
This tighter credit environment is hitting money supply. Last month, money supply actually shrank - it grew at under the rate of inflation.
Charles Delvalle at Investor’s Daily Edge says this means investors should now expect deflation to hit asset prices.
This echoes Bill Bonner’s recent warnings about the risks of a coming deflationary slump in the U.S…
Two Reverse ETFs Are Making a Killing in This Bear Market
Wall Street had a good day yesterday on the back of better-than-expected U.S. GDP data. The Dow rose 200 points.
But it’s not the long-only investors who are making money in this market. “For the first time since 2002 investors who sell short or bet against rising stock prices are basking in some real profits,” says Eric Roseman.
Despite recent gains, this is still as bear market. US stocks are down 20% since their October highs. Two reverse ETFs have been making a killing in this environment, says Eric…
Chuck Butler Says Strong Q2 GDP Data Just a ‘Blip’
U.S. stocks were given a boost today by a strong upward revision of GDP growth data for Q2. According to updated figures, between April and June, the economy expanded by 3.3% y-o-y, up from a preliminary estimate of 1.9%. The Dow (DJI), S&P500 (INX) and Nasdaq (IXIC) all responded with gains of over 1% during the day’s trading.
Long-Term Trends Support Case for Shorting Financials
Dan Amoss at The Rude Awakening says financial stocks have not yet reached the bottom. We are still at the early stages of the credit loss cycle, and the Fed’s bailout strategy will eventually dilute shareholdings of financial institutions. Meanwhile, supply constraints will support commodity prices in the long run, and U.S. is rapidly losing its status as a safe haven for capital. For these reasons, Dan says there are still plenty of attractive short-selling opportunities in financials…
Dow’s (DJI) Earnings Slump Will Lead to More Inflationary Policies
Financial charts can generally look good or bad. But sometimes, one comes along that is downright ugly. The Rude Awakening’s Joel Bowman says the earnings chart for the Dow Jones Industrial Average index (.DJI) is particularly sore on the eyes. Earnings were negative in Q208, for the first time ever, giving the index a price-to-earnings ratio of nil. Such losses will heighten deflationary fears, encouraging the government to crank up its inflationary policy. More from Joel…
Behind the Recent ‘Rise’ in Consumer Confidence
U.S. consumer confidence is on the mend, we are told. The Conference Board Consumer Confidence Index rose to 56.9 for August from a revised 51.9 in July. This was a higher jump than forecast. The only problem is on the same day that the Conference Board came out with its jaunty view of the collective mind of American shoppers, ABC News spoiled the party by telling us that consumer confidence was at a record low for the week.
America’s Economic Mistakes Will Take Time and Money to Correct
The Daily Reckoning’s Bill Bonner says the biggest credit expansion ever could now be turning into the largest credit contraction. Big mistakes were made in all quarters of the economy, and these take time to correct. Bill says he still favors gold over other asset classes, given the enormous downside potential for the U.S. dollar.
Americans Must Cope With a Lower Standard of Living
The Daily Reckoning’s Bill Bonner says Americans are going to have to get used to a lower standard of living. After living beyond their means for so long, they will have to leave beneath their means to survive the correction.
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