Prof. Wolf had said the same thing before. (check his October 2015 Economic Update video) For those of you who blithely say " the market goes up, market goes down" akin to "tide goes in, tide goes out" also remember a tsunami is also " a tide", a big one.
Let's say that China's manufacturing is indeed slowing down. That would signal the beginning of a recessionary period, as what happens in capitalist economies. Is it a reflection of what's happened, due to the austerity policies in Europe and North America or is it an indicator of what's to come?
Either way, for the 1% they have enough cash to ride it out. In fact, they may welcome a recession; it will force wages even lower. For the rest of us, how many of you have enough cash on hand to ride out a contraction? With governments reducing or straight out eliminating social safety nets in pursuit of "balancing budgets", it doesn't look good.
The next 2 quarters will have an effect on the upcoming presidential elections. Depending on what state the economy is in will determine whose message will resonate with voters. If I were you, (which I am) I'd be watching what the Fed does, what the Congress does and what actions the Executive branch will take. Meanwhile, I'd start putting away some cash reserves and adjust my portfolio toward liquidity as a hedge. If nothing comes of it, then in the 4th quarter of 2016 you can start putting your money back and and again look long term.
Good luck and good night.
= new reply since forum marked as read
