The slope of the S&P 200DMA is now negative. (downward slope) This does not happen very often. In the past 20 years, only in August 2000, December 2007 and September 2011 has the slope turned down (negative). I believe that the S&P 200DMA represents not only the ability of these companies to increase their profits over time. I believe that it also represents the ability of the economy to support the growth.
So, does anyone believe that the economy can support increasing profits for the foreseeable future? Question, what happens when the headwinds to economic growth all work together?
Hi Pat. I think you make some good points. I have been posting some information about the economy actually slowing down. ECRI recently said this was happening and today we got information on personal consumption that I posted. I would not at all be surprised by a recession in 2012. If this does occur it will definitely affect profits and the stock market. Thanks for posting. Mike.
The slope of the S&P 200DMA is now negative. (downward slope) This does not happen very often. In the past 20 years, only in August 2000, December 2007 and September 2011 has the slope turned down (negative). I believe that the S&P 200DMA represents not only the ability of these companies to increase their profits over time. I believe that it also represents the ability of the economy to support the growth.
So, does anyone believe that the economy can support increasing profits for the foreseeable future? Question, what happens when the headwinds to economic growth all work together?
Hi Pat. I think you make some good points. I have been posting some information about the economy actually slowing down. ECRI recently said this was happening and today we got information on personal consumption that I posted. I would not at all be surprised by a recession in 2012. If this does occur it will definitely affect profits and the stock market. Thanks for posting. Mike.