Debts get even harder to pay
Robert Ross - Senior Equity Analyst, Mauldin Economics

Dear Reader,

Right now, we’re being told that the economy is great and we should all feel rich.

Do you?

Like many, you may have more debt than you’d like. Or maybe you’re helping your children through school or with their own debt. Possibly you’re feeling less confident in your ability to retire.

And that’s with this “great” economy we’re supposed to be enjoying.

Yet we’re seeing multiple signs that things are slowing down…  

US industrial production—that’s the measure of everything produced in American factories—has slid lower for five straight months. It now stands at its weakest point in two years. It’s on the verge of falling into outright contraction.

There’s more...

Existing home sales for April fell 0.4% from March and were down over 4% from April 2018. On a year-over-year basis, monthly total existing home sales have declined for 13 straight months!

The markets are becoming bipolar about earnings, too.

Companies which meet or exceed expectations draw almost no response from investors now. But companies with negative earnings surprises saw their share prices chopped by 3.5% on average—greater punishment than what we’ve seen over the past five years.

Now here’s the really big one…

One of the most reliable recession indicators used by investors—something I call the Diamond Cross—was triggered recently. That doesn’t mean a recession is imminent… but it’s coming.

So, what happens when it hits?

If you’re like me, that’s a big concern.

But I have a plan. Despite the gathering gloom, there’s still good—even great—news for your portfolio.

That’s because there’s plenty of opportunity both before AND during a recession… if you know where to invest your hard-earned savings.

All it takes is a solid plan to protect your portfolio. One that’s not just recession-proof, but also generates more income than you’re enjoying right now.

Yes—that means more cash and more safety from the coming hard times.

You can start learning about this strategy on the special blog I’ve set up for readers with the same recession and cashflow concerns as you.

Join the conversation and get answers about defending your portfolio from the coming recession, including how to generate more income—even during crises.

This is your chance to ask me a question and read what other investors are thinking right now.

See you there!

Until next time,

Robert Ross

Robert Ross
Senior Equity Analyst

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