Worries about the global economy were relatively contained until today when BASF, the German chemical manufacturer connected to the semiconductor, autos, pesticides and consumer products industries, revealed that it may need to cut its full-year earnings forecast by a whopping 30%! The company blamed low car sales along with the U.S.-China trade war.
The lowered outlook forecast by BASF is a big deal because the corporate conglomerate is considered a bellwether stock for the entire global economy.
Worries about the health of the global economy have exploded. Investors have real reason to worry now, especially with the Federal Reserve believing that business is strong because of the good labor report last Friday. Labor is NEVER a leading indicator. Labor always lags as employers try their best to hold on to employees for as long as possible.