Goldman Sachs reports their Global Economic indicators show the world has reentered a contraction and a steep stock market crash lies ahead.
Goldman Sachs Global Leading Indicator (GLI) show that the global economy has entered into a contraction phase “suggest this could be a much more severe downturn” than Wall Street is currently anticipating.
Notably the GLI turned negative ahead of the Internet bubble bursting at the turn of the millennium and far in advance of the Financial Meltdown of 2008.
The angle at which we entered this Contraction phase is worse than angle preceding last year’s crash ahead of the Debt Ceiling crisis crash almost on par with the angle at the bursting of the Internet bubble in 2000.
If there is any consolation, the angle is notable less than recession’s of Bush senior and the Financial Crisis of 2008.
However, Goldman’s research is predicting a market crash worse than that of the early 90?s recession and one slightly less than that of the turn of the millennium sell-off.
Zero Hedge reports:
The Swirlogram Speaks: “The World Has Reentered Contraction”
The business cycle shifted into the Contraction phase of Goldman’s ‘Swirlogram’ framework that we introduced here three weeks ago. The latest observations in their Global Leading Indicator (GLI) as well as the way we entered this Contraction phase suggest this could be a much more severe downturn. In their own words: “We do not yet see clear reasons for optimism in the data, and our GLI framework still suggests that the current phase of the cycle is in a challenging one.”
Goldman’s Global Leading Indicator, month-on-month, has turned negative…
The Swirlogram has entered the Contraction phase…