U.S. economy

Recession in Late 2015 a Strong Possibility as U.S. Economy Slows at Alarming Pace

By Friday, May 22, 2015

Recession in Late 2015Is the U.S. economy getting close to a recession? Rising business inventory and slowing consumption say yes.In these pages, I have argued over and over again that consumption data is important; it’s the biggest part of the U.S. gross domestic product (GDP) calculation. And, currently, consumption in the U.S. economy is stalling at an alarming pace.I look at consumer consumption to see how businesses are reacting, and how. Read More

U.S. Economy Faces Budget Crisis in 32 American States

By Thursday, May 21, 2015

U.S. EconomyWe are frequently told that the U.S. economy has recovered from the Great Recession of 2008 and 2009. However, according to a recent report, 32 states still face budget gaps in fiscal 2015, 2016, or both. (Source: Reuters, April 27, 2015.)Does a Revenue Problem Mean Higher Taxes in the Future?The fact that a majority of states are facing budget gaps “serves as an early warning,” according to S&P. Read More

U.S. Economy Looks Gruesome; More Misery to Come

By Tuesday, May 19, 2015

U.S. EconomyThe U.S. economy is slowing down. Even the Organization for Economic Cooperation and Development (OECD) said U.S. growth is lagging and an economic slowdown shouldn’t be ruled out.The OECD’s leading indicators are designed to anticipate economic changes whether the economy is expanding or slowing down. The OECD expects the U.S. economy to grow at an annual rate of 3.1%. On top of that, the Federal Reserve anticipates that the. Read More

Full Employment in the U.S. Economy; Why It’s Just Another Bogus Statistic

By Monday, May 18, 2015

Full Employment In US EconomyAccording to David Doyle, an analyst at Macquarie Capital Markets, the U.S. economy could reach full employment within a year. My question is: is this all we need in order to say the U.S. labor market is strong? (Source: Bloomberg, May 14, 2015.)U.S. Economy: How Full Employment Is PossibleDoyle’s method first estimates the number of unemployed workers and those that will join the workforce. This number. Read More

U.S. Economy in Recession Already? Business Inventories Piling Up

By Thursday, May 14, 2015

U.S. Economy in RecessionIs the U.S. economy in more trouble than we realized? On Wednesday, May 13, the U.S. Census Bureau released the March 2015 Manufacturing and Trade Inventories and Sales report. Sales for March are down 2.1% compared to the same period last year. Business inventories are up 2.9% year-over-year.The total March business inventory-to-sales ratio is at 1.36. The ratio for last March was 1.30.So…what does that mean?Sales Down, . Read More

Unemployment Rate: March Job Report Says U.S. Economy Still Fragile

By Thursday, April 30, 2015

Unemployment rateIn early April, the Bureau of Labor Statistics (BLS) reported a 126,000 increase in nonfarm jobs and an unemployment rate of 5.5%. Does this mean the U.S. economy is improving? (Source: Bureau of Labor Statistics, April 3, 2015.)The unemployment rate has certainly improved from its 10% standing in September 2009. Because of the currently low-declining unemployment rate, many analysts are saying the U.S. economy is on stable footing with. Read More

U.S. Economy to Enter Recession by 2016?

By Friday, March 13, 2015

US Economy recession 2016Don’t buy into the false optimism. While the mainstream media and economists are convinced there’s prosperity, I am concerned the U.S. economy will enter a recession in late 2015 or early 2016.The simple fact is that consumer spending is the biggest factor driving the U.S. economy, and it is presently experiencing its own recession.Retail Sales Declining, Store Inventory IncreasingWholesale sales in the U.S. economy are plummeting, while. Read More

How to Protect your 401(k) from a Coming Stock Market Crash

By Tuesday, February 17, 2015

170215_PC_whitefootThe idea of an impending stock market crash may seem pretty untenable right now. After all, compared to the rest of the world, the United States had the most encouraging economic, business, and financial outlook in 2014, and the same goes for 2015. But there are several key factors painting a not-so-rosy picture for the global economy and your retirement could be on the line if you’re not cautious. (More. Read More

To See Where Stocks Are Headed, Look at These Two Indicators

By Monday, February 9, 2015

See Where Stocks Are HeadedTo see where the stock market is headed in 2015, we don’t have to look much past these two important economic factors: the U.S. dollar and the economy, both domestically and outside the U.S.Rising U.S. Dollar to Impact U.S. EquitiesAfter the Great Recession, to drum-up sales, U.S. companies focused their attention elsewhere in the global economy. With the U.S. dollar sliding lower in value back then, American companies. Read More

U.S. Home Prices Could Fall This Year

By Friday, February 6, 2015

Home Prices RisingAsk any professional involved in the real estate market and they will tell you that when interest rates are low, it’s a great time to buy. Lower interest rates mean higher affordability because mortgage payments are smaller.In December of 2014, the 30-year mortgage rate tracked by Freddie Mac stood at 3.86%—the lowest since May of 2013. (Source: Freddie Mac, last accessed January 27, 2015.)With mortgage rates in the. Read More

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From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

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