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Bloomberg reports four U.S. states have entered recession.
The economies of Alaska, North Dakota, West Virginia, and Wyoming are contracting. Three others are now at risk of “prolonged declines”: Louisiana, New Mexico, and Oklahoma.
A recent Bloomberg poll shows 20% of economists believe a nationwide recession will hit this year. That’s the survey’s highest number of “bears” since 2013.
Regular Daily readers know the reason for these contractions: a rising U.S. dollar. It’s part of a massive global credit contraction Tom calls “The Great Unwinding.”
Its effects are playing out everywhere from the global oil rout… to China’s “hard landing”… to U.S. domestic manufacturing woes… to socio-economic instability in countries around the globe (like Venezuela).
Bottom line: The Great Unwinding will wreak havoc on markets throughout the world. As Tom says, it’s time to play “maximum defense.” Follow the Palm Beach risk-management protocol to the letter. Then, be ready to make “quick strike” trades that take advantage of the volatility. (Learn how in our next item.)