Wyn Thomas - Axys Investment Management

Weekly Market Commentary 23rd August 2019

BUSINESSES EXPECTING A RECESSION

This week there were no end of strange headlines, from Trump tries to buy Greenland to Trump declares himself the chosen one, but its likely they were all an attempt to obscure the one headline that really mattered; the latest survey of purchasing managers that suggests US businesses are expecting a recession. The PMI survey is an indicator of sentiment, but if enough people believe there will be a recession it can become a self-fulfilling prophecy. The markets and industry are now expecting a recession, if this pessimism spreads to the consumer, one could be here sooner than we think. Read more…