Sunday, June 9, 2019

Follow the Trends: No Recession Yet!

We have forecast that markets and corporate earnings have peaked and more tepid growth could be expected through 2019. However, minus wild card events such as spiking oil prices, war, terror strikes, etc., no recession will hit the U.S. until later in 2020.

With the Presidential Reality Show revving up, the Trump administration will increase pressure on the Federal Reserve to cut rates, which will boost economic activity and markets in the short-term.

Beyond rate cuts, we forecast Trump will also push the Federal Reserve for more quantitative easing measure. And, world economies are also under pressure to pump more liquidity into their slumping economies and financial systems.

The Trends Journal continues to stress that more artificially induced stimulus measures will further inflate the $250 trillion global debt bubble, leaving economies more vulnerable to severe downturns that will crash markets and economies.

How severe is the current market turmoil? Watch gold, the safe-haven asset. Stuck in the high $1,200 per ounce trading range, it is not signaling danger ahead. When gold spikes above $1,450 per ounce it will signal true market fears.

- Source, King World News, Read More Here