Posted on 01/25/2010 7:00:21 AM PST by blam
January Markets Signal A Textbook Recession
Vincent Fernando
Jan. 25, 2010, 9:50 AM
Let's be clear that we're not calling for a U.S. recession (in the technical GDP-decline sense) in 2009. We're just saying that asset classes traded as if we're entering one.
Check out the chart from Econompic below.
Bonds rallied while stocks, commodities, and real estate (Real Estate Investment Trusts, REITs) fell. Even emerging market equities proved themselves to be more volatile than U.S. stocks (the S&P 500), falling by a larger amount as they generally are expected to.
This is pretty close to textbook economics 101 expected asset class performance for a recession. It's odd how this happened while the pros became more bullish on equities than they've been in quite some time.
(Excerpt) Read more at businessinsider.com ...
I know you're not the author but do you think that it should be "in 2010"?
The retreat in commodities IMO is some profit taking after a mini-bubble, nothing has been done to correct the dynamics that allowed a massive commodities bubble in 2008.
What happens when you enter a recession with 17% unemployment, trillions in current govt debt, and a fascist/marxist (take your choice) US president who intimidates the PC liberal US congress with his race?
The chart must be 2009 data.
Harry Dent predicts the coming depression with bursting commodities and real estate bubbles this year
http://www.youtube.com/watch?v=YYVrjV9-iSA
He has injected uncertainty and confusion into every segment of the economy and furthermore fails to understand that trying to stimulate the economy in a piecemeal Keynesian manner only provides tiny little short-lived boosts BUT continues to run up the deficit.
Obama is like that old adage of "teaching a man to fish" in reverse.
Rather than give the nation the fishing poles, lines, and hooks that it needs to feed itself...he doles out tiny little fish sandwiches that neither satisfy or nourish. And the ultimate insult is that he charges it all on our account.
“piecemeal Keynesian manner” It’s 0bama, shouldn’t that be Kenyanesian?
lol...I love it!
Could have fooled me.../s
Looks like a recycled article, eh?
I think it's just a slip but I'd like to know that for sure, I'm trying to absorb as many opinions as possible.
I did exit utilities on the 15th and I'm ready to pull the trigger on (corporate) bonds but I could be just as ready to jump back in if I'm wrong and so far today hasn't convinced me.
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