The markets rallied a little on Thursday, up 400 points on the Dow 30, but Friday’s jobs report was low and we’re not seeing any indications that we’ll be getting off this collision course with a recession any time soon. Even with the 400 points, it’ll still take a climb up to 28,000 for me to believe we’re breaking into this final 'Dark-Window' rally I’ve been talking about for the past year.
Recession calls were not as loud this week, but we’re continuing to see slowing everywhere – in countries and in industry. Housing and construction indexes are trending down, RV sales, retail, financials…you name it.
We’ll need to watch what the president does. He’ll certainly try something and many say his next effort will be to distribute money directly to consumers. But that’s a band-aid and hardly a sustainable one at that. By late 2020-21, we’ll be in a recession for sure, though I still think we’ll be in it by mid-next year.