RR Phantom
Location : Wasted Space Job/hobbies : Cayman Islands Actuary
| Subject: A Global Earnings Recession Is All But Certain As World Trade Sinks Thu Jun 14, 2018 6:53 pm | |
| Markets have rallied into summer. The mess in Italy – which hasn’t resolved itself at all – is yesterday’s news.
Within the last two weeks, the VIX is down 35% – investors’ fears are essentially gone.
If you turn on CNBC, you’ll see that the U.S. ‘goldilocks’ economy’s intact, and big names like Larry Kudlow – Trump’s Top Economic Advisor – stating that the U.S. could hit 5% growth.
But, if you take the contrarian approach and do some digging yourself, you’ll see things are deeply troubling – especially with global earnings. . .
Last month, I wrote about the alarming signal coming from the little-used-but-highly-accurate South Korean Export Growth (SKEG) Indicator. It’s telling us that there’s a global earnings recession right around the corner.
Over the last 25 years – the SKEG has preceded each boom and each bust in global earnings. That’s because it’s a leading-indicator – meaning it’s a measurable economic element that changes before the economy starts to follow the trend.
https://palisade-research.com/world-trade-tanking/ |
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