Category: Global Economies are headed towards Recession in 2019

IMHO the Stock Market party is almost over

Back in Dec I called that the upcoming stock market rally would be a “Sucker Rally“, which would allow deeper pockets to off load their stock holdings. BlackRock’s Chief Equity Strategist Kate Moore called it a “Risk Rally” when she recently stated “A lot of the investors within BlackRock and around the street have been using the big rally in stocks as an opportunity to fade some risk, and rebalancing portfolios. I’d be hard pressed to come up with a segment of our clients that was buying aggressively into this risk rally,”.

Video is courtesy of the Sprott Media YouTube channel

The US Fed will be holding meetings for the next two days. They will continue to raise Interest Rates again this year. I’m just not sure if they will have a rate increase now or wait till later this year. The key excuse of raising Interest Rates is to fight Inflationary Pressure.

I have noted that Gasoline prices have stopped going down and IMHO have started to reverse back upwards. The price of fuel impacts the price of all goods sold, as those goods have to be transported. Raise the price of fuel and you trigger an increase in the Rate of Inflation. That theme was used last year to trigger Inflation Growth to help justify the increases in Internet Rates. It worked until it impacted the Stock Markets last December.

When Interest Rates are increased once more, that will imho trigger a Stock Market correction which will lead into a Major Recession. 2019 should see Stock Market and Economic changes of Historic Proportions.

Video is courtesy of the CNBC YouTube channel

In 2018, China’s Economy grew only 6.6%. That is the lowest growth rate in 28 years.

In Guangzhou, China’ major Export hub and 4th largest city the economy grew 6.5%. The forecast had been for 7.5% growth.

Click on this link to visit the South China Morning Post website to read their article titled: “China set to report slowest economic growth for 28 years“.

Click on this line to visit the China Economic Review website to read their article titled: “Guangzhou misses growth forecast as trade war bites“.

IMHO the slowdown in China’s economy is not related to the supposed Trade War with the USA. I believe that it is related to the wordwide slowdown of the major economies. For example Germany just missed being “officially’ in a Recession.

Video is courtesy of the Fox News TV YouTube Channel

2019 has only just started, but already the signs are showing up that Global Economies are headed towards Recession in 2019.