Economic Indicators Are Saying The Economy is In Trouble
The U.S. economy is running out of breath.
As you probably know, the U.S. economy has been “recovering” since 2009. The current recovery, now seven years old, is one of the longest in U.S. history.
It’s also one of the weakest.
Since 2009, the U.S. economy has grown at just 2.1% per year, making this the slowest recovery since World War II. Last quarter, the economy grew at just 1.1%.
We won’t know how the economy did during this quarter until late October. But we don’t expect good news, and that’s because signs of a stalling economy are everywhere.
• They’re in the job market. The U.S. economy created 29,000 fewer jobs last month than economists expected. Source
The U.S. economy is not only out of breath it is very close to complete exhaustion. The Federal Reserve having been in control of our economic direction since 1913 has proven to be a complete and utter failure. Are we now in the death-thros of complete economic collapse?
• They’re in corporate earnings. Profits for companies in the S&P 500 have been falling since 2014.
• They’re even in the price of oil. Right now, U.S. demand for gasoline is weak, which tells us Americans aren’t driving as much.
Today, we’re going to look at even more evidence that the economy is struggling.
If this flood of bad economic data continues, the U.S. could soon enter its first recession in seven years. Normally, this wouldn’t worry us. After all, recessions are a normal part of the business cycle.
But we don’t expect the next downturn to be a “run-of-the-mill” recession. According to Casey Research founder Doug Casey, the next financial crisis will be “much more severe, different, and longer lasting than what we saw in 2008 and 2009.”Source
The stock market, according to former Dallas Federal Reserve President, Richard Fisher, has enjoyed a “front loaded wealth effect” that began somewhere around 2009. You remember 2009, wasn’t that the year the stock market began to “recover” and we were told, over and over and over about how the economy had turned a corner? Well, we now know that was a complete lie, at least according to the words of one of the people making these types of statements. Mr. Fisher went on say the economy was entering into a “digestive period“? Welcome to the digestive period.
The good news is Casey Research believes there is a way to protect your wealth, through paper assets, and avoid the carnage that is surely coming.
• Right now, several key economic indicators are saying the economy is in trouble…
We encourage you to take these warnings seriously.
If you have any money in the stock market right now, take a good look at your portfolio.
Get rid of any expensive stocks. They tend to fall further than cheap stocks during major sell-offs.
You should also avoid companies that need a growing economy to make money. These include airlines, major retailers, and restaurants; basically any company that depends on a healthy U.S. consumer.
Avoid companies with a lot of debt. If the economy continues to weaken, heavily indebted companies will struggle to pay their lenders. You don’t want to own a company that falls behind on its loans.
We encourage you to hold more cash than usual. Setting aside cash will allow you to buy world-class businesses for cheap after the next big sell-off.
Finally, we recommend you own physical gold. As we often point out, gold is real money. It’s preserved wealth for centuries because it’s a unique asset. It’s durable, easily divisible, and easy to transport.
It’s also survived every major financial crisis in history. This makes it the ultimate safe haven asset.Source
Will these moves protect wealth from the coming changes in our monetary and economic policies? Only time will tell.