Monday, November 2, 2015

The Majority Is Unprepared For Global Recession

News
An economy is either expanding or contracting. As long as economic activity composite (EAC)'s trend remains negative, a recession is likely. Intense cheer-leading within an election year from both bulls and bears means the majority will tune out the message of the market until it's undeniable (chart). This means the vast majority of Americans will be completely unprepared for the consequences of global recession from 2015 to 2017.



Chart


Headline: Why El-Erian sees 30% US recession risk by 2017

Economist Mohamed El-Erian said Monday he puts the risk of a recession in the United States at 25 percent to 30 percent.

"The road we're on is going to end. We cannot rely on central banks, and central banks cannot be the only game in town when it comes to policy," the former Pimco co-CEO said in a CNBC " Squawk Box " interview. "By 2017, we're going to tip only way or the other."


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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.