Economic cycle

 From Morgan Stanley

  Economic cycles tend to differ and rarely follow the same path. The current growth deceleration has very little in common with the 2007 experience. Then, it was the overleveraged household and banking sectors pushing the economy into retreat, with the house price correction dictating the pace of the economic slowdown. The US corporate sector reacted by contracting its balance sheets, translating eventually into a credit crunch and today… It is the corporate sector, which is standing in the limelight for current economic analysis. This is where global trade deterioration will be felt first, and this is where the leverage sits

With that in Mind I will be keeping a close eye on some of the High yield Indices for example the OAS high yield energy sector

..And the High yield tech Sector,which is in better shape then Energy

And lastly the CRB Rind Index which is the index of Spot raw industrial is trading like a deflationary Environment not an Inflationary one

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.