Are troubling times ahead for the U.S. economy—and how do we know before it’s too late? In this installment of U.S.M.R. Market Insights, Coy Wells identifies three signs we could be heading into a recession, and how to keep your wealth safe.
What are the 3 Warning Signs of a Recession? – Video Transcription
Coy Wells: 00:00
Hello, my name is Coy Wells with USMR Market Insights and US Money Reserve. Today we're going to talk about the Fed rate hikes that we talked about over two weeks ago on June 13th the feds raised interest rates and as we've talked about in the past, there's a direct correlation with raising interest rates and how the stock market will react. We talked about if they raised interest rates, we had most likely see the stock market take a downturn. Now, obviously there's trade wars taking place between China and the United States, and as we talked about, this is a handpicking order right now, seeing who's the biggest dog on campus between two of the world's largest economies, the Fed interest rate hikes is a crucial role in the U.S. Stock Market. People have to understand that the stock market is overvalued and it is overinflated. The Shiller index will continue to confirm that as well as the decline in the current treasury bond yields.
Coy Wells: 00:48
Treasury bond yields are continuing to decline as they continue to decline that means more treasury bonds or more difficult to sell and you have more coming back from foreign countries since June 13th which just a few weeks ago, we've only seen three positive days in the stock market. Now we can say it's just trade wars all we want, but if we look at the statistics all the way across the board, if it's about trade wars, and we're talking about steel and aluminum and a few items here, why are all the consumer goods down? Why are the retail stores down? The retail stores or where consumers buy goods and when they buy goods at a supports the stock value and whether it be apple computers, whether it be an iPhone, where the be at galaxy phone, whether it be Nike, whatever it may be, it doesn't matter. Long as a consumer is buying the goods, the stock value in the earnings of the company should be solid, but if interest rates is a key role in driving the stock price now it confirms that the stock prices are overvalued and this is something that we've been talking about for six months to almost a year now.
Coy Wells: 01:43
We've continued to see the Shiller index continue to rise, which is a confirmation of that happening right now. We're seeing US treasury bond yields continue to decline, which is further confirmation that the stock market is over value and the lack of competent confidence globally is starting to slack off in the U.S. economy. These are crucial items to understand when you have money sitting in the market. The U.S. Stock market is at one of its most volatile and most critical points that we've seen in 10 to 15 years. Most consumers today have done well in the stock market and we're not saying that you need to go run out and go pull all your money out of the stock market. As we continue to shoot these films like we're doing today, we're encouraging to look at the information as it is at face value.
Coy Wells: 02:28
The consumers that we talked to and consumers that I talked to on a daily basis continue to talk about how they are in fear that the stock market is at a bubble. Most of them know that it's at a bubble, but the problem is they're worried. They're waiting for a specific key indicator. They're waiting for a major correction and in an extended period of time of corrections for them to pull their money out. Under this correction folks, we are at a point where if the money starts declining, you will not be able to recover. Under this recession. The top experts across the entire United States and globally are telling us that United States is headed for a deep seated recession and that nasty word that we've talked about before. Some are even predicting a depression and it's not just a few. I mean Forbes magazine, Wall Street Journal, CNBC News, CNN, Fox News, all of them, their top analyst are saying that we could go from a recession and go into a depression.
Coy Wells: 03:18
The Treasury Department in 2013 specifically listed key indicators. Those indicators were U.S. Treasury bonds. Those indicators were interest rates in a declining U.S. Dollar. All three of those are starting to surface at the same time. Whether the Treasury Department will be accurate from a prediction. That was done over in 2013 I don't know. But all the things that we've talked about in all the items that we've listed out are all falling to become true today. So with that being said, the new flyer that we have out today is A Day Without Silver. Most of you know that silver is very undervalued, and most of you know that silver has been stagnant for over a year and a half to two years now. Call the number on your screen to get more information with A Day Without Silver so you can understand what's taking place to get more information about what we discussed today. And as always, thank you for watching USMR market insights and US Money Reserve.