The Rising Risk of an Economic Recession

The Rising Risk of an Economic Recession

Posted On October 1, 2019 1:28 pm

This morning’s ISM report came in at 47.8, well below expectations and the third consecutive month of reading below 50, indicating a contraction in economic activity.  This is also the lowest reading since June of 2009.

The stock market took a nosedive immediately after the report was released as the precipitous decline in both economic activity and manufacturers outlook reignited fears the U.S. could enter a recession in the next few months.

The bleak reading comes on the heels of continued weakening data from Germany, India and China, alongside a report from the World Trade Organization which expects total global trade to expand by only merchandise 1.2% in 2019; this is down from 3.1% forecast at the beginning of the year.

Econ… Continue reading at StockNews.com

Tagged with:

About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

Related Articles