Every week I go over dozens of charts on the state of the economy for the weekly Saturday Show. This week a clear theme has emerged: the economy is rapidly slowing. Frankly, the economic numbers are plunging like a rock rolling off a cliff.
With the ISM PMI numbers earlier in the week or the ADP Jobs Report, the message is clear: economic contraction is underway.
We even had the folks in Atlanta with the GDPNow forecast, cutting GDP growth in Q1 by about -50% this week!
I will go over the charts on this week’s Saturday Show for Premium members but I wanted to get out this trader alert now.
A massive amount of money is flowing out of banks and real estate and into Treasury bondsUnited States Treasury securities are debt instruments issued by the United States government to finance its spending. Treasury securities come in a variety of forms, including bil... and money market funds. We are also seeing huge amounts of money flowing into gold and silver.
Large diversified banks are holding up better than non-diversified smaller regional banks. This means that the banking crisis is not yet over or should we say ‘bank deposits crisis’.
REITs are limiting redemptions to just a fraction of what investors are asking for.
With the rapid deteriorating economy, we may not have one more interest rate hike by the Fed in May. We are at the end of the Fed’s rate hikes this bull/bear economic cycle.