“Recession fears are spreading among investors at a time when valuations across major assets are looking dangerously stretched following years of monetary stimulus, the latest Bank of America Corp. survey shows. About a third of asset managers polled believe a global recession is likely in the next 12 months, the highest probability since 2011 — when Europe was engulfed by a sovereign-debt crisis.”
“The US yield curve, considered by investors to be a predictor of a recession, on Monday flattened to levels not seen since before the financial crisis.”
But hey, we are spending like the recession is already here:
“The U.S. fiscal deficit has already exceeded the full-year figure for last year, as spending growth outpaces revenue. The gap grew to $866.8 billion in the first 10 months of the fiscal year, up 27% from the same period a year earlier, the Treasury Department said in its monthly budget report on Monday. That’s wider than last fiscal year’s shortfall of $779 billion — which was the largest federal deficit since 2012.”
Imagine what we’ll need to spend once the recession hits.
And now think about all the candidates who are promising to spend like there’ll never be a recession. Of course, they are all lying to get elected. That’s what politicians do. But we are not under contract to believe them, are we?
Go on the tightest budget you can, save, set a hard savings goal every month, get as ready as you can.