There have been three red f lags highlighting downside risks to growth and the U.S. economy for the better part of a year: manufacturing, energy and finance.
These red flags were the impetus behind my recent book, Recession-Proof: How to Survive and Thrive in an Economic Downturn. Interestingly, these were also three of the main downside risks to the global economy that Christine Lagarde, the head of the International Monetary Fund (IMF), noted in an interview on April 5.
Following Lagarde’s warning, lower forecasts of global growth were released by the IMF on April 12, when an IMF spokesman said that the global economy was “not technically in a crisis.” These IMF statements did not instill confidence, especially since they followed a March 29 speech Fed Chair Janet Yellen, gave in which “Uncertainty” was part the title—and a critical Leitmotiv. Red f lags were hoisted months ago for a reason. Now and in coming months, these same factors threaten growth for the U.S. economy—and material handling.
By Jason Schenker, CFP®, ERP®, CVA®, Prestige Economics, LLC