Is U.S. about to hit recession?

“Next year, we will hit recession”, calls Chad Shoop, Editor, Pure Income.

In his recent article, Chad states that the trend in durable goods for the year 2016-17 is an indicative of the country on the verge of recession. According to Chad, durable goods orders can be considered as a measure of company’s confidence in its growth. Rising orders shows confidence that the economy will continue growing, while falling orders shows shrinking economy and curtailed spending.

The durable goods trend has shown a fall only twice over the past two decades. Once before the 2000-2001 recession and second time during the midst of global financial crisis of 2008. For the remaining years, i.e. from 1992-2000, from 2001-2008 and from 2009-2016, this graph has rose at a choppy but steady path. There is a pattern here. Each time this graph has turn lower, it has been a signal for imminent recession-today is no different.

The U.S. Census Bureau News generate these graphs every year. It is a simple line graph with trends lines indicating the rising trends in it order patterns over the last two decades. The figures to the right show the amount invested by companies in the durable order goods over the years. The graph makes its claim very clear in a very simple way, warning us about our future.

Hence, we need to prepare ourselves for a recession like investment- environment. We need to find a strategy to make profit from declining stocks before it is too late. Because, as Chad states, “Crash is coming. It’s just a matter of when, not if.”

Reference: http://thesovereigninvestor.com/us-economy/new-signs-economic-recession/