Yesterday, I revealed some disturbing information.
That information?
That the financial system is already in recession. It’s not a matter of a recession arriving quickly… a recession is already right here.
By fast approach of evaluation…
1) Copper, a commodity that’s carefully aligned with financial development, has erased HALF of its pandemic features.
2) Oil, one other commodity that’s carefully aligned with financial development, has collapsed by 23% within the final 4 months. And the scenario is getting worse: oil dropped over 9% on Tuesday.
In mild of all of this, you may be saying, “OK Graham, is a recession is already right here, why isn’t it exhibiting up within the information?”
As a result of the information is backward-trying.
Every bit of knowledge the U.S. studies considerations what has already occurred… normally months in the past. Working example, the U.S. solely simply launched its GDP information in regards to the first quarter of 2022 eight days in the past.
To place that into context, the financial system is now in its THIRD quarter of the 12 months. And we’re solely simply getting the ultimate outcomes for the primary quarter now!?!
Once more, every bit of knowledge the U.S. is weeks, if not months previous.
The market, by the use of distinction, is ahead-looking: it reductions what’s about to occur.
With that in thoughts, what does the under chart let you know in regards to the true state of the financial system right now?
And for those who assume that chart is nasty trying, you higher not take a look at this subsequent one.
It makes excellent sense… the final two recessions noticed main bear markets that erased over 50% of the inventory market’s worth. Why would this one be completely different?
