Profit Confidential Warns of Two Key Indicators that Point to Major Economic Downturn
Profit Confidential says two key indicators suggest the global economy will continue to face serious headwinds in 2016.
New York, NY, United States – December 3, 2015 /MarketersMedia/ —
Profit Confidential (www.ProfitConfidential.com), an e-letter of Lombardi Publishing Corporation, a 29-year-old consumer publisher that has served over one million customers in 141 countries, warns two key indicators point to a global recession in 2016.
“You don’t have to look far to see where the global economy is headed in 2016. Just look at two key indicators—copper prices and global trade—and you will get a quick idea of what’s in the cards for the economy,” says economist and lead contributor Michael Lombardi. “As it stands, both of these indicators are pointing towards a global recession, one that is possibly worse than what we experienced back in 2009.”
Lombardi explains that copper prices recently hit their lowest levels in six years. As an industrial metal, plunging prices suggest demand is down and factories across the world are slowing down their output. While copper prices have been falling since 2009, they are down more than 50% since 2011. This should be a stark warning for those bullish on the global economy.
Another indicator of global economic activity, the Baltic Dry Index (BDI) is also in free fall being at a 30-year low. The BDI measures the price of transporting raw materials by sea; it takes into account 23 different shipping routes and averages the cost of transporting goods via ship. The lower the price is, the less the demand to ship goods (such as grain, iron ore, and coal) to global ports. If this leading indicator declines, it means the global economy is headed towards a global recession. When it rises, it suggests economic growth.
“With just one month left in 2015, the stock market is lower today than where it was at the start of the year. Global economic indicators, like the BDI and copper prices, paint a very negative picture,” Lombardi concludes. “Add to this the fact that earnings and revenues at the S&P 500 companies are contracting and we have reason to worry about 2016. I continue to believe the stock market spent most of 2015 putting in a major top and that stock prices will have a very difficult year in 2016.”
Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, visit www.LombardiPublishing.com.
For more information about us, please visit http://www.profitconfidential.com/
Contact Info:
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Organization: Lombardi Publishing Corporation
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Release ID: 98205
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