A Bank of America global survey published today showed that just under half of the respondents believe we’re on our way to a global recession and the great majority think the U.S. will experience at least a mild recession in the nest little while. At some point, a recession becomes a self fulfilling prophecy because individuals and institutions prepare for a slowdown by tightening the spending belt. Before you know it, viola!, nobody’s spending money.
Not me, not yet. I think we’ve got some slower economic times ahead of us but it won’t be because I’ve curtailed spending. Yesterday we took ownership of a grill that cost about as much as a used car. I didn’t realize how enormous it was until it was side by side on the deck with my old ratty model. I actually think the one that’s served us so well for so many years started slinking itself off to the corner because it was so intimidated.
In MBS land, the technical picture continues to improve as Bond pricing has clearly found a bottom and the 50/200 day MA has made a positive crossover.
