Tag Archive: next recession

Fed Still on Track to Cut

The highly anticipated jobs report for August showed the U.S. added just 130,000 jobs, a significant downside miss from expectations for 150,000 new jobs added. The unemployment rate was steady at 3.7 percent. This figure looks especially weak compared to the ADP employment report released earlier in the week, which showed a gain of 195,000 jobs when market expectations were looking for 140,000 jobs. The jobs data falls into the camp of the policy doves who want to see further rate cuts. The Fed will... Continue Reading

All Eyes on the Fed

This week features the release of the latest FOMC meeting minutes as well as testimony before Congress by Fed Chief Jerome Powell. The minutes will be released on Wednesday, while Powell’s remarks will begin Wednesday and conclude Thursday. The latest meeting minutes will likely take a back seat to Powell’s comments, and investors are hoping that the Fed Chief will provide some clarity about the central bank’s plans regarding rates going forward. Expectations for an interest rate cut have been dialed back in recent days... Continue Reading

Are Stocks Making a Bull Trap?

The benchmark S&P 500 hit a fresh all-time record today. Stocks and risk appetite are on the rise as investors remain hopeful that a U.S./China trade agreement will be reached. Over the weekend, President Trump met with Chinese Leader Xi Jinping at the G20 meetings in Japan, and the two leaders essentially called a truce. The U.S. agreed not to raise levies on additional Chinese goods, while China reportedly agreed to purchase more U.S. agricultural products. With the two sides seemingly back at the bargaining... Continue Reading

3 Reasons Gold May be Useful During a Recession – Urgent Economic Indicators

In case you missed it, numerous economic indicators are now flashing red. The latest indicator to show weakness was today’s non-farm payrolls report. The U.S. added just 75,000 jobs last month, while consensus estimates were looking for a gain of about 177,000 jobs. The figures for March and April were also revised lower, and wage pressures were muted with average hourly earnings rising less than expected. The risk of recession is clearly on the rise, and now is the time to diversify with asset classes... Continue Reading

Category |

3 Reasons Gold May Shine During the Next Recession

It’s no secret that the global economy has been slowing. The ongoing U.S./China trade war is dragging on the globe’s first and second-largest economies and there currently does not appear to be an agreement in the making. The current economic expansion is getting quite long in the tooth, and the effects of tax cuts and government spending are likely to fade in the months ahead. Some analysts have already begun sounding the alarm bells about the next recession, which could come sooner than many anticipate.... Continue Reading

Category |

War on Trade Could Force the Fed’s Hand

Not long ago, the Federal reserve had taken a decidedly hawkish approach towards monetary policy. The Fed seemed confident in the economy and was ready to continue the current cycle of interest rate hikes. Market dynamics have shifted significantly in recent months; however, and thus the Fed may be forced to reverse course and start cutting rates again. The market has already priced in a 25-basis point hike by the end of the year. With the latest Fed meeting minutes looming this afternoon, the question... Continue Reading

Three Reasons Another Recession is Inevitable

Some analysts in recent months have suggested that the U.S. could be headed for another recession. The ongoing U.S./China trade war, fading effects from tax cuts and government spending and an aging expansion are just a few of the reasons cited. Other analysts have suggested that recent economic weakness and market declines are normal and simply some bumps in the road. Whether the next recession hits this year, next or in the next few years, it will arrive. Here are three simple reasons that a... Continue Reading