I’m getting that feeling again. I get it every time the Dow Jones Industrial Average hovers near 18000.
The International Monetary Fund (IMF) has once again lowered its forecasts for the world economy, expecting just 3.2% growth this year.
Source: IMF: World economy ‘too slow for too long’ – BBC
The only problem with this is that the IMF has been lowering its forecast every time it makes a new forecast. They are masters at making an imminent and inevitable market correction feel like a small bump on the Autobahn at 190mph in a Bentley Mulsanne Speed.
While the Fed strives to be cryptic to enhance its Aura, the IMF prints a Headline of Impending Doom followed by an explanation of why we should not be too concerned as long as things go according to plan. A plan that keeps getting revised. Downward.
Another article by the same BBC writer Andrew Walker details an IMF statement that states “risks to government finances are rising almost everywhere” while IMF managing director Christine Lagarde has put it “we are on alert, not alarm”.
What exactly would put her on “alarm”? The collapse of the Eurozone?
I can understand not wanting to roil the markets. But this is ridiculous.
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