Weakness in leading economic indicators has become so pervasive that Economic Cycle Research Institute co-founder Lakshman Achuthan now predicts a new recession is unavoidable and states - "You haven't seen anything yet. It's going to get a lot worse."
However, I'm not jumping on the "new recession" bandwagon just yet, and believe the Fed will do anything to prevent another recession. But, there is the good possibility that Achuthan is correct when he says "we ain't seen nothing yet", and we just may see stock prices drop even further.
Personally, I believe the stock market is a like a beautiful woman, fickle and unforgiving at times, but willing to give it up in a moment's notice. So, I see this recent pullback in the markets, based on those recession fears, as an opportunity to "get some" select stocks cheaply while I can.
Take a look at this Mark. It's coming up on six months later and Lakshman Achuthan is still holding onto his recession forecast that was predicted to occur by the end of last year.
ReplyDeleteTo be fair, Achuthan is usually correct in his economic assessments. Not sure what happened with this prediction of his, but no investor is infallible. Even the Oracle of Omaha gets it wrong sometimes.
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