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S10 E40 WHERE WE ARE TODAY AND WHAT TO EXPECT NEXT MONTH with William Eastman
EPISODE 40: WHERE WE ARE TODAY AND WHAT TO EXPECT NEXT MONTH
Good: 4 (13%) Neutral: 4 (13%) Bad: 18 (60%) No Data: 4 (13%) Total: 30
Our analysis: given the 3 Quarters of negative GDP growth, it fits the technical definition of a recession. Looking at manufacturing activity and therefore jobs, we are at the beginning of the contraction.
Left alone by the government, the market can cleanse itself in 6-8 months, certainly within a year. However government will not resist the political pressure to do something and that will lead to distorting the contraction.
Remember the goal of a contraction in the business cycle is remove bad investing decisions (all uses of capital) to bring a balance between demand and supply, between the value of something and its price.
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By IBGR onAir Talent William EastmanEPISODE 40: WHERE WE ARE TODAY AND WHAT TO EXPECT NEXT MONTH
Good: 4 (13%) Neutral: 4 (13%) Bad: 18 (60%) No Data: 4 (13%) Total: 30
Our analysis: given the 3 Quarters of negative GDP growth, it fits the technical definition of a recession. Looking at manufacturing activity and therefore jobs, we are at the beginning of the contraction.
Left alone by the government, the market can cleanse itself in 6-8 months, certainly within a year. However government will not resist the political pressure to do something and that will lead to distorting the contraction.
Remember the goal of a contraction in the business cycle is remove bad investing decisions (all uses of capital) to bring a balance between demand and supply, between the value of something and its price.