Please Prepare Well In Advance: What’s Coming Next Year Will Be Worse Than 2008. We’ll Face An Economic Slowdown On Par With That Of 2008 Accompanied By A Market Crash. And This Will Happen At A Time In Which Central Banks Will Be Totally Out Of Ammo.
December 17th, 2012
by Phoenix Capital Research
What 2013 Means For You, Your Portfolio and the Economy at Large
Now that Obama has been re-elected, the BLS and other Government entities have begun to revise all of the positive data from before the November election downward. New jobless claims are back over 400,000. The amazing new home sales of 389,00 from October has been revised back down to 369,000. And a new record has been set for food stamp usage.
Things are only going to get worse for the following reasons:
1) Increased taxes
2) Increased regulation
Both of these items will result in people parking their cash rather than investing in the economy. Case in point, last week $132 BILLION was suddenly parked in bank savings accounts. That’s $132 billion (nearly 1% of US GDP) leaving the US economy and plunking into savings accounts
To put this number into perspective, this is more than the amount of money that fled to the safety of savings accounts when LEHMAN FAILED.
In simple terms capital is going into hibernation. Without the investment of capital, the US economy will continue to weaken. Between this, the fiscal cliff, the earnings disaster for corporations and more, the market is set for a truly horrendous 2013.
Economic bell-weathers such as Caterpillar (green), Fed EX (red) and McDonalds (purple) are already discounting this in a big way.