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Donald Trump says we’re in a bubble that’s leading to a “very massive recession”…
In a recent Washington Post interview, Trump suggested the U.S. stock market is overvalued. He said the Federal Reserve’s cheap money policy has created a new asset bubble.
He then warned of a severe economic downturn on the horizon.
It took no time before establishment economists began dismissing his predictions…
But a recent Zero Hedge article highlighted some interesting statistics the establishment isn’t addressing.
The U.S. Department of Commerce reports American factory orders dropped year over year (Y/Y%) for the 16th month in a row. (Last month also saw the lowest dollar total for factory orders ($454 billion) since the summer of 2011.)
Zero Hedge goes on to note: “In 60 years, the U.S. economy has not suffered a 16-month continuous year-over-year drop in factory orders without being in recession.”
Bottom line: We’ve noted several U.S. states are already in or near recession. Global shipping has slowed to a trickle. And a massive global credit contraction is underway.
Any responsible investor should heed Trump’s recession warning… and follow Tom’s advice to play “maximum defense” in this environment. Review PBRG’s risk-management protocol right here.