Don't Listen To Central Bankers

| January 20, 2019
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Want to know why the Fed never predicts a recession?

To do so would accelerate the arrival of a recession.

This would set off a chain reaction of events.

  • Investors would sell stocks
  • Markets would tumble
  • Confidence would be shaken.
  • Consumers would curb spending

The Fed is in the projecting confidence business.

Remember when Chairmen Ben Bernanke stated that ‘Subprime loans and lending issues were contained.” Yeah – me too!

We are seeing it now with Chairman Powell stating there is no recession risk and many Federal Reserve governors talking about continued growth in 2019.

We are also seeing this in terms of what is coming out of the Eurozone. The ECB continues to state no recession risk while turning dovish. Um have they even looked at the data:

  • Eurozone Industrial Production plunges to -3.3% year-over-year for November.
  • Industrial Production accounts for 23-40% of GDP depending on the country.
  • German Export Growth is -0.2% year-over-year for November.

Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O

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