Lions... We Have A BIG Problem.

From Greg M

Lions…

BREAKING. US factory activity/manufacturing has now contracted for a third consecutive month. (THIS IS THE DEFINITION OF A MANUFACTURING RECESSION).

Three straight months in the red zone (below 50) confirm that US manufacturing is in a recession, and this is not just a blip. (Just wait for the FAKE news to spin it).

This also tells us that a broader slowdown in demand, and output, is WELL underway. Moreover, input costs are rising.

This is not just a slowdown in domestic production, but also in global trade flows. (Exactly what you would expect to see with a GLOBAL economic contraction).

What This Means for Stock Markets.

Equities… Companies with manufacturing exposure (industrial sector) will face margin compression, lower earnings, and therefore stock price weakness.

Lions… This is EXACTLY what we have been warning about. Global trade is retreating, and demand is dropping, BY THEIR OWN NUMBERS! Moreover, the US economy is rapidly losing momentum. AND ALL THIS IS OCCURRING AS PRICES CONTINUE TO RISE.

(Do you think that any of this is just by accident?) Just some comedy of errors got us here? Really?

GM