A surging economy is an excellent indicator that a dynamic and progressive economic saga is at hand. Of course, one of the best gauges about a country’s financial situation are what finance experts frequently refer to stocks. Currently, some wise and practical businessmen or traders are still recovering from an October whiplash as the 11th month of the year sets in on Wall Street. According to some notable finance analysts, there was an unthinkable and a horrible swoon sometime during the mid-month.

This is a graphical illustration of how an ugly economy syndrome.

This is a graphical illustration of how an ugly economy syndrome.

However, the stock market was able to bounce back last October. This tremendous economic turnaround was frontlined by both Dow as well as S&P 500, after these stock market giants had superbly boosted their performances last Friday. However, some say that the domineering impact of the mid-month economic dilemma has one or the other posed a negative polarity on the stock market which could somehow lead to an ugly economic syndrome according to Thomas Kee, CEO and President of the Stock Traders Daily. Kee further explained.

When the market broke just recently…the uptrend that was established at the beginning of 2013 also broke. So we are no longer in that upward sloping channel that began at the beginning of 2013 and that opens the door for further declines.

The inevitable ugly economic syndrome was even more catalyzed by this very convincing analysis of his which says.

On Oct. 9, Kee told clients that a break of 1925 would put the S&P 500 on track to fall to as low as 1469 in a very short period. But 1469 was just a way station toward Kee’s ultimate target of a 66% drop in the S&P 500. (Yes, a 66% decline and, no, that is not a typo.

Hence, Thomas Kee has significantly noted that an ugly syndrome of economic setback can never be concealed by an October surge insofar as his macroeconomic conclusions are concerned. Moreover, he has in the same mentioned that

It doesn’t change the demographic risks that exist in our economy.

These undaunted economic forecasts were mainly based on what he specifically pertained to as an investment rate. To define, this an incredibly modified way of monetary supply. In concrete terms, the rate of investment is the replenished amount of money which is to be placed in the US economy. These conclusions alongside with those previously mentioned alarming economic realities date back from his theoretical studies about economic trends since the 1900’s. Among the other documented economic slumps that he used as references were The Great Depression, the 1961 to 1981 economic storm and the December 2007 until the end of 2023.

In the final analysis, Thomas Kee has warned that an ugly economic syndrome does not enable itself to show its real colors because of this very enticing scenario.

It is the infusion of the trillions of dollars into the financial system and asset prices that have thus far prevented the natural economic conditions that exist from continuing to show their ugly head.

In a more negative phase, an ugly economic syndrome is something which has no stimulus involved to get it back into shape. Likewise, the stock market will have its own share of a downslide to meet up with the economy rather than the economy finding its way to catch up with the stock market.

Category: News

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