Thursday, January 21, 2016

Few Recognize Global Economy Contracting With Alarming Speed

Collapsing Chinese stock and oil prices, a byproduct of a slowing global economy, has ignited fears of a hard landing for the world’s second-largest economy will ripple outward. The majority, followers of opinions, easy explanations/headlines rather than the message of the market, BELIEVES that the 80 month-long US economic expansion remains strong; this possibly includes the Fed.

Let me start with the economy, and a basic fact: The United States of America, right now, has the strongest, most durable economy in the world, State of Union Address 2016.

The message of the US Economic Activity Composite (EAC), however, debunks this belief. The fact that only a small minority are listening to this message doesn't invalidate it. Now is not the time to see what you want to believe. See the message of the market!

Headline: Union Pacific Profit Falls on Weak Freight Volume

Union Pacific Corp. said its fourth-quarter earnings fell 22% as the railroad operator continued to face weak freight demand, especially for coal, which offset benefits from higher prices and cost-cutting efforts.



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