Warning Signals being Converted
The Macro warning signals in the stock market and the economy that have been recognized over the past couple of years appear to be close to triggering. I continue of the opinion that the FED will not be the cause of a stock market down move by raising interest rates. Global economies are too weak, starting with the U.S. In fact it appears that T-Bond prices are bottoming and probably setting up for a test of the high prices seen earlier this year.
The Fed missed its chance to raise rates earlier this year and now will be without ammo when things get desperate. Over the past six years Congress has refused to do the two things that could have averted this situation, 1) invest in infrastructure, and 2) make massive changes in taxation policies, policies that have moved the country’s assets into unproductive areas and stifled the consumer.