If you follow any snippets of economic new you have probably seen where the ECRI (Economic Cycle Research Institute) has issued there warning of an upcoming recession U.S. Economy Tipping into Recession . What sets ECRI apart from other is that they have correctly called the last three recessions without any false alarms in between. CEO Lakshman Achuthan, has been hitting the news circuit discussing their forecast.
I picked up on this story back a few weeks ago at the end of September and since then the markets have been on a tear. The key point to remember is that you can always have bear market rallies during downturns. An interesting trend that I have seen the past week is that a few of the momentum stocks such as Netflix and Green Mountain Coffee Roasters have taken a nose dive even as the broader market has continued to rally. This could be an early indicator as people move out of less risky assets and into safer plays
You can learn more about ECRI here and can watch a detail interview by Tom Keane of Bloomberg with Lakshman Achuthan
No comments:
Post a Comment