9 scenarios and all lead to stock plunge
Commentary: Death of ‘Growth Economics’ spells danger
By Paul B. Farrell
MarketWatch.com
Oct. 30, 2012
SAN LUIS OBISPO, Calif. (MarketWatch) — “Is the U.S. Condemned by History to Slow Growth?” asks Bloomberg BusinessWeek. Yes. But for traders and investors, it’s far worse than just bearish slow growth. Plan for no growth or zero growth.
Why? Wall Street, America and the world economy are in the early stages of a long era of “de-growth,” a reversal of economic growth and reduction in market growth as population growth adds new stresses on commodities resources, creates unrest, disasters and wars. Big problems ahead.
Please listen: Earnings growth is in a long slowdown in all of the following nine scenarios. Economy down. Earnings down. Stocks down. Trading down. Focus on the long term, on history, look past the noise about elections and fiscal cliffs.
Why? This is an economic “perfect storm.” All nine scenarios end in bad news for all markets, spell danger for your future income, your family’s security. Start planning now.
1. 800-year growth trend: Back to pre-Industrial Revolution levels
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