Celente – The Global Economic Slowdown Won’t Crash Markets…This Will
Celente – The Global Economic Slowdown Won’t Crash Markets…This Will from King World News
Today the top trends forecaster in the world, Gerald Celente, just predicted the global economic slowdown won’t crash markets…this will. He also made a prediction about the central banks’ next move.
Economic Slowdown Won’t Crash Global Markets…This Will
January 23 (King World News) – Gerald Celente: Up until yesterday, after three straight weeks of market gains in the new year, Wall Street had erased nearly all of its 2018 losses while Emerging Market equities rose for a fourth week straight…
This despite headline business news over the past three weeks that “Eurozone Will See Slower Economic Growth,” “Sharp German Falloff Fans Global Fears,” “World Bank warns of ‘storm clouds’ over global economy,” “Recession Tops CEO Fears,” …seldom was heard a discouraging word that a weakening global economy would slow down the equity bounce.
In fact, the word on The Street was the opposite.
“Stocks Rise as Fears Subside,” blared the January 19-20, front page Wall Street Journalheadline: “U.S. Stocks climbed Friday to notch their fourth consecutive week of gains as fears of an economic slowdown that gripped markets in December seem to have subsided.”
And on Monday, even after China reported its economic growth cooled slightly in the fourth quarter as expected, registering a 6.6 percent growth rate for 2018, the weakest in 28 years, nearly all the Asia-Pacific markets closed higher.
WHAT A DIFFERENCE A DAY MAKES
Yet on Tuesday it was a totally different story. Equity markets across the globe moved sharply lower. Why? “Dow snaps 4-day winning streak as fears of an economic slowdown intensify.” —CNBC.
In the absence of aggressive government and central bank measures the global economic slowdown will escalate and equities will move sharply lower.
Therefore, in the U.S., despite solid corporate earnings and stronger than expected December jobs report, Federal Reserve’s Chairman Jerome Powell said the Fed was “prepared to adjust policy quickly and flexibly.”