Moody’s Analytics Chief Economist Mark Zandi says the US economy
- appears to be gagging on the uncertainty created by the haphazard economic policymaking happening in DC.
Zandi cites:
- Retail sales, manufacturing production, real consumer spending, home sales and most telling, consumer confidence, are all down meaningfully in the past month or two
More at his tweet:
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Its easy as traders to get divorced from the economy. Of course, when making trading decisions depending on your time frame and/or approach considering the economy may not even enter your thinking. Which is fine.
The thing is, trading and running a business out there on main street can be quite different. If I think I’ve made a bad decision I can click a button and be out of a trade in a blink of an eye. I can jump into the next trade just as quick. Easy-peasy. But what if I’ve invested a couple of million in capital expenditure on a new piece of equipment? There’s no quick exit button for that. Folks running a main street business have to think long and hard about expenditures, risk, employing people … and sometimes its easier, and indeed advisable, to just sit it out until the chaos is over.
You can always jump on some insider trading to generate some $$$ 😉 while awaiting the haphazard policymaking to pass:
