An investor game plan. Investors know they face uncertainty (that’s always true), but the source of the uncertainty is a problem in and of itself.
Germany is the world’s fourth-largest economy, but will be of no help in stimulating global economic growth. Germany can barely help itself. Unlike China, the US, and Japan, Germany is not suffering weak growth: it’s already three quarters into a recession.
With weak growth, falling household income and contracting trade, Jim Rickards explains why recession-prone Japan won’t provide optimism for the global economy as we near the cycle’s peak.
The economic dynamics of China are different from the US, but no more encouraging. It’s helpful to begin with a quick recap of Chinese economic performance over the past three years.
Let’s consider some of the world’s key economic regions before we untangle what’s really going on. And we’ll start with the US.
Writing an article on the economic state of the world is usually a straightforward exercise. If the world is in good economic health, you can describe the policy reasons behind that condition and identify specific stocks and sectors that will outperform the market.