Read David Rosenberg’s op-ed
in the Financial Post
David talks about the OECD composite leading indicators
which have been negative for 20 consecutive months. Composite leading indicators (CLIs) are designed to anticipate turning points in economic activity relative to trend six to nine months ahead, and continue to anticipate stable below-trend growth momentum in the OECD
area as a whole.
Pippa refers to the beleaguered office space company WeWork. WeWork set up shared coworking spaces in cities around the globe, enjoying fast success and generating huge investment interest. However, after its failed IPO plans in 2019, the company’s valuation plunged by $40 billion, leading to the ousting of its CEO Adam Neumann and the layoffs of 6,000 employees. You can read all about the company’s rise and fall here
Pippa talks about how monetary policy will change once the world goes digital. According to some reports
, central banks in Europe, America, and China are looking at creating their own digital currencies as a way to challenge the rise of cryptocurrencies which have no mainstream regulatory authority.
Pippa talks about China's economy slowing down in recent years, which she ascribes to an increase in wages, collapse in competitiveness, and faulty quality control. the world's second-largest economy is expanding at its slowest rate since the early 1990’s
. Some experts project that a 1 percentage point drop in Chinese growth would take 0.2 percentage points off total global growth.
David talks about capital spending as a recession indicator. Capital spending, or Capex, is when a company puts money towards investments and expenditures. Companies often reduce their spending when they are worried about an upcoming recession. Capex surged to 11% last year in the US, but is expected to grow by only 3.5% this year.
David points out that one stock in the S&P 500 did well during the Great Recession: Walmart. Here
are some of the other public companies that appreciated in value from 2007-2009.