The Next Economic Recession?

We have had a nice and predictable bear market rally coming off a recession for almost the last two years. Now it has deteriorated into a sideways, trendless market.

Look at the upside potential versus the risk. The market moved a little bit after the USA elections in a reflex rally.

On the other hand, the new administration will have to deal with some real economic structural problems.

There are few magic bullets left to deal with the next coming recession.

The next recession is going to be more difficult with tougher decisions.

In one sense, Bush had some easy decisions. In the face of an impending implosion as the aftermath of the stock market bubble, the classic solution/answer is tax cuts and deficits, coupled with lower rates.

They went overboard on the deficit, but it did soften what should have been the worst recession in 30 years.

There will be no tax cuts available to the present president and larger deficits will be very difficult ...

So ... Get ready for the next recession!

 

Increases in U.S. Jobless Rates
Always Signaled Recessions