How to Spot the Recession Before They Do

If deflation caused by the credit market collapse overtakes the easing Fed and the falling dollar (leading us into a painful recession), we’ll hear about it from CNBC and FoxNews about nine months too late. Is there any way for the astute individual (who knows what shows up in the “news” is always past-tense) to spot the breakdown as it’s happening?

There is- watch the commodities, they react first.

Gold and Oil

Keep an eye on the charts of Oil and Gold for a top, see the dollar find a bottom against… everything, and when you’re comfortable we’ve rolled over into the spiral, plan your trades accordingly. What worked brilliantly the last year or so may suddenly stop working, and you’ll find your trades hitting stops instead of profit targets.

That will mean it’s time to get out the old playbook and mix things up, because we’ll be on the field with an entirely different opponent.

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1 Comment

  1. Bill aka NO DooDahs! said,

    December 8, 2007 @ 2:48 pm

    Since all we ever hear about from the financial media is the “subprime” crisis, the housing recession, the earnings recession, and “will there be a recession?” …

    Then isn’t the real point of your first sentence that the slowdown is already over, and better times are coming soon?

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