Pragmatic Capitalism

Practical Views on Money, Finance & Life

3 Bearish Signs in a Sea of Negativity

Last week I published the 3 bullish signs in a sea of negativity (click here).  So I figured I’d even the score and mark down some of the more bearish economic signs I’ve been seeing lately.

Yes, there’s a lot to be negative about, but one could easily argue that the negativity is justified.  The following indicators are all important barometers of economic growth.  This will be sure to brighten your day before you head into the weekend!

Rail Traffic is grinding to a halt.  As I noted earlier, rail traffic is slowing substantially.  This week’s data showed negative growth in intermodal traffic and the 12 week moving average has slowed to just 1.65%.  This has tended to be a leading indicator of recession so the downtrend in this data is certainly a red flag.

(Chart via Orcam Investment Research)

Manufacturers’ New Orders have turned sharply negative.  This has been discussed quite a bit in the analyst community and while it’s not necessarily an immediate sign of recession, like rail traffic, it is one of the glaring warning signs of just how weak this economy is.

(Chart via Dshort)

Suez Canal Traffic is turning negative.  The Suez is one of the most trafficked waterways in the world and an indicator of global economic growth.  The chart below (via Reuters) shows that total tonnage and global export traffic have turned negative.

Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC.Orcam is a financial services firm offering asset management, private advisory, institutional consulting and educational services.He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.
Cullen Roche

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