It's an earning recession!
2019 Sept 21
I learned two new concepts this week.
The first one: we are in an earning recession, which means that the average of the most powerful public US companies (SPX again!) have seen their profit go down for two quarters in a row.
The second one: the FED mandate, which until now was known to be "to promote effectively the goals of maximum employment, stable prices, and moderate long term interest rates" seems to have wobbled.
The FED did lower the interest rates (by 0.25%) this week, announcing that it did so because of the big companies earning recession... Hello???