JOHN NYARADI: U.S. Is Headed For Recession, So Get Ready. Wall Street Sector Selector Remains In “Red Flag”Mode As We Approach The End of 2012.
Investmentwatchblog.com
December 13th, 2012
from John Nyaradi:
As Europe and Japan enter recession, can the United States be far behind?
Japan’s Cabinet Office recently reported that its second estimate of third-quarter GDP indicated contraction by 3.5%, consistent with its first estimate. Because second-quarter GDP contracted by 0.1%, the nation’s economy is now in recession. According to America’s Economic Cycle Research Institute (ECRI), Japan’s last recession (which began in the summer of 2008) ended in March of 2009. Japan had previously suffered through severe recessions during 1997-1999 and 2001-2002. Japan’s Ministry of Finance reported that the nation’s exports declined to 5.15 trillion yen in November from 5.36 trillion yen in October.
Read Japan’s Recession Fails To Smash Stocks
Turning to Europe, on Dec. 6, European Central Bank President Mario Draghi reported that the euro-zone economy is expected to contract by 0.5% during 2012, compared with economists’ expectations that it would contract by 0.4%. Beyond that, the euro-zone’s economy is expected to contract by another 0.3% during 2013, despite an earlier outlook for expansion by 0.5%. This signals a significant, prolonged recession. Eurostat reported that during the third quarter of 2012, GDP contracted by 0.1 in the euro zone. On a year-over-year basis, euro-zone GDP declined by 0.6% and EU27 GDP contracted by 0.4%.
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