Category

Recession

Investors Needn't Fear a Double-Dip Recession

A new report contains some very good news for investors: Double-dip recessions are very rare. That means that a drop back into recessionary conditions looks less and less likely even as unemployment creeps higher and has crossed the 10% threshold for the first time in a quarter century. After reviewing U.S. economic history all the […]

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Is the Government Rehabilitating the Economy or Delaying the Inevitable?

While all the talk at present is about economic corners turned and markets charging ahead, no one is paying much notice to an American economy that's deteriorating right before our eyes.

These myopic commentators seem to be simply moving past the now almost-universally held conclusion that, before the crash of 2008, our economy was on an unsustainable course. If these imbalances had been corrected, then perhaps I, too, would be joining in the euphoria. But evidence abounds that we have not veered at all from that dangerous path.

The U.S. Bureau of Economic Analysis just reported that consumer spending as a percentage of U.S. gross domestic product (GDP) has risen to 71%, a post-World War II record. This level is notably higher than other wealthy industrialized countries, and vastly higher than the levels sustained by China and other emerging economies. At the same time, our industrial output is contracting, our trade deficit is expanding once again (after contracting earlier in the year), and our savings rate is plummeting (after an early year surge).

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Where to Find Big Profits in a Post-Crash World

[Editor's Note: The essay that follows was adapted from "Fiscal Hangover," a brand-new global investing book written by Money Morning's Keith Fitz-Gerald. For more information – including details on how to get a $10 discount off of the cover price – please click here.] As I write this, everyone from Wall Street to Main Street […]

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As Gas Prices Escalate, Worries About a Recession Turn Into Fears of Inflation

By William Patalon III Executive Editor Money Morning/The Money Map Report As the post-Memorial Day hangover lingers, and $4 per gallon gasoline becomes a national reality, expect more and more daily energy prognostications. Goldman Sachs Group Inc. (GS) already is on record for $200-a-barrel oil. As you all know, our own Keith Fitz-Gerald – Money […]

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Money Morning’s Top 10 Reasons Why We May Have Hit A Bottom, But Not The Bottom

By Keith Fitz-GeraldInvestment DirectorMoney Morning/The Money Map Report Since the start of the year, the debate over the state of the U.S. economy seems to escalate by the day. The ongoing subprime mortgage mess, the resultant credit crunch and daily stories about housing defaults, escalating oil prices and lousy corporate earnings only seem to further […]

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Soros: "We Have Not Yet Seen the Full Effect of Possible Recession"

By Jason SimpkinsAssociate Editor George Soros first made a name for himself with The Quantum Fund, a hedge fund that's often described as the first real global investment fund, which he and partner Jim Rogers founded in 1970. Over the next decade, Quantum gained 4,200%, while the Standard & Poor's 500 Index climbed about 50%. […]

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Four Rules That Will Protect Your Wealth and Boost Your Profits Even if We're Battling the British Contagion

By Keith Fitz-Gerald Investment Director Money Morning/The Money Map Report With the recent market collapse, the subsequent U.S. Federal Reserve-negotiated sale of The Bear Stearns Cos. Inc. (BSC), and a central bank that's socializing trillions of dollars in debt in a misguided attempt to "fix" the credit crisis, many investors are very astutely asking: How […]

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More Recession Warning Signs Send Markets Lower

By Jennifer Yousfi Managing Editor A drop in gasoline prices coupled with more troubling economic indicators sent stocks down yesterday (Thursday), erasing gains made in early morning trading. At the New York close, the three major U.S. stock indices were in the red. The blue-chip Dow Jones Industrial Average Index dropped 147.60 points (-1.19%), to trade […]

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Five Survival Strategies That Will Allow You to Profit Even in a Recession

By Keith Fitz-Gerald Investment Director Money Morning/The Money Map Report With the Dow Jones Industrial Average having dropped more than 370 points over recessionary fears on Tuesday, and the much-broader Standard & Poor's 500 Index having dropped by an equal 3%, it is clear that many investors have stopped thinking about stock-market profits. But profits […]

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The Drumbeat for a Downturn Deepens as Service-Sector Report, Richmond Fed Official Both Point to Recession

By Jason Simpkins Associate Editor U.S. stocks plunged yesterday (Tuesday) after a report said that January was the worst month for the American service sector in nearly five years and Federal Reserve Bank of Richmond President Jeffrey Lacker said the chances of a U.S. recession had risen. All three of the key U.S. indices dropped […]

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