While everyone was distracted by the festivities of December, the yield curve in the United States went virtually flat. Stock market prices dropped further and this time around China appears unable to make up for economic slack elsewhere. In China, all signs are turning red: retail sales are growing at the slowest pace in 10 years, the real estate market is falling again, auto sales are on the decline, and the purchasing managers’ index (PMI) fell below 50, which points at a contraction of industrial activity. In other words: this time around, China will not be able to compensate for a slowdown of the U.S. economy. Indeed, 2019 might not turn out to be a very positive year for stocks at all.

Stocks Were Hammered

Yield Curve Virtually Flat

Source: Investing.com

For How Much Longer Can the Global Economy Hold?


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