Tuesday, May 10, 2016

Watch Out Below If Market Declines
Happen At The Same Time As Recessions
"I'll reiterate that while leading economic data are already sufficiently weak to raise concerns about recession, our views about the immediacy of those risks would be stronger if the stock market was to decline by even a few percent. Stock market declines, in and of themselves, have quite a weak relationship with recessions. However, when those declines occur jointly with tepid economic data on other fronts (for example, relatively weak new orders and order backlogs, declining industrial production, weakness in real sales, flat aggregate hours worked, and so forth), those tepid economic conditions generally deteriorate quickly for the worse."
- John Hussman
LINK HERE to the essay

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