Fed Chairman Powell said “GDP could shrink more than 30%,” but he doesn’t see a Depression.
Well, that is a ridiculous statement. The technical definition of a Depression is “GDP contraction of more than 10% in a given year and economic recession of more than 3 years.”
So, since it may not last 3 years, the shocking, radical and unprecedented 30% drop in GPD doesn’t count?
That is like saying, “The plane didn’t technically crash, since it ran out of fuel before it hit the ground.” C’mon . . .
OK, enough editorializing, I do have technical analysis to offer and it is in this weeks video.
Check it out:
Wow from a technical standpoint it seems probable that the market will go further down. Even though I hope on some level you are wrong it seems to be going this way and I will trade the wave down with you. One of my concerns is, what if the market destabilizes to a point where the value of currencies becomes instable. A market that’s getting overflown with more money while at the same time dealing with a smaller market production, that has been the recipe for galloping inflations in the past (German crown after WWI had several 1000 % inflation for this reason) How as a trader can we protect ourselves best from such a possibility? Even if such a scenario never ends up happening, what would be possible steps we can apply for our portfolio to protect ourselves for such a potential scenario? I am c
urious about your thoughts on this…
My expertise is in technical analysis of charts. I really can’t offer meaningful insight on currency values, inflation etc.
Your best summary video commentary yet.
Wow! Thanks. What made it good – compared to previous posts? Always wanting to learn.
Dean