Economy to Stay Weak 'For a Number of Years': Gross - Economy * US * News * Story - CNBC.com.
Poor unemployment numbers today contributed to a very poor market heading into the three day weekend (markets are closed tomorrow). When we return next week we'll be moving into the "earnings season" and I believe we can expect at best mixed results. More likely will be more companies disappointing than surprising positively. Consumers are simply not spending as they have in the past. If you're long individual stocks, keep a skeptical eye on them. It shouldn't surprise you if markets are weak in July and some particularly high flying, poor quality stocks give up their recent returns.
I'm in agreement with Gross that economic growth in the near future will be anemic and that inflation remains an issue - he discusses stagflation which is poor growth coupled with inflation. Be prepared for this scenario by introducing some sort of appropriate hedge - TIPS, commodities, short dollar ETF, bank loans, etc. How you hedge is up to you but consider it a longer term investment and be patient if it struggles in the short-term before inflation picks up.
Poor unemployment numbers today contributed to a very poor market heading into the three day weekend (markets are closed tomorrow). When we return next week we'll be moving into the "earnings season" and I believe we can expect at best mixed results. More likely will be more companies disappointing than surprising positively. Consumers are simply not spending as they have in the past. If you're long individual stocks, keep a skeptical eye on them. It shouldn't surprise you if markets are weak in July and some particularly high flying, poor quality stocks give up their recent returns.
I'm in agreement with Gross that economic growth in the near future will be anemic and that inflation remains an issue - he discusses stagflation which is poor growth coupled with inflation. Be prepared for this scenario by introducing some sort of appropriate hedge - TIPS, commodities, short dollar ETF, bank loans, etc. How you hedge is up to you but consider it a longer term investment and be patient if it struggles in the short-term before inflation picks up.
