Another Recession Warning

Pretty good read on the state of the economy, in my view, from Hussman Funds. Do read the whole thing, but to nutshell it – the leading economic indicators are essentially predicting a recession, with only one particular indicator (the Purchasing Managers Index) not quite in line with everything else. It will be, though – just wait a bit.

Taking a look at the history of these things, John Hussman figures we’ll bottom out in stocks about a year from now, in employment near the end of 2012 (sorry about that second term, Barry, but thems the breaks) and housing some time in 2014. This is pretty much what I’ve expected – though I lack the analytic skills to put perception in to strong argument. Hussman does it very well.

So, we’re heading that way and it will be pretty bad. For the most part, there’s no way around this. We’ll just have to deal with it.