We continue to hear about a recession hitting the US soon, but when will it actually hit, and how hard? Consumers continue to spend their hard earned dollars and job growth is still on the rise. However, the housing market is definitely seeing signs of instability. So, where does this economic uncertainty stem from?
Fortune Magazine has some information on what is going on:
- 60% of analysts predict a recession around the time of the 2020 election, or fourth quarter for the next fiscal year.
- Trade war and increasing tariffs only extends the uncertainty in the market.
- Federal Interest rates are now very low, which while sounds great, means the economy is not doing very well in terms of growth.
- Home prices have risen to a point at which they have maxed out most buyers trying to enter the market.
- Home inventory is very high.
Pay attention to the Thorny Theory. It could be a big indicator as to when the recession will be in full affect.
For the Thorny Theory, click here.