Worried about the state of the markets?
Let's talk about what's going on. Are we experiencing an economic slowdown? Should we be worried?
TheStreet's managing editor Jerry Kronenberg and Action Alerts PLUS analyst Zev Fima broke down the signs pointing to an economic slowdown.
"Well, there's certainly a lot of reasons to worry and that's why the market's on edge. First of all, we've got the Fed cutting rates. Now in hindsight, the Fed, by the time they cut rates in the past, we were always actually already heading into a recession. Second, the market typically peaks right around where we're heading into a recession. Well, we peaked for the moment intraday and the S&P in July. It doesn't mean we can't go back, but we're lower now than we were then. And last but not least, we were simply overdue for a recession. Recessions happen. There are like winter. Since World War II, the average economic expansion is 4.8 years long. We're over 10 years now, so we're due, could be happening. That's why you hear all those worries about yield curves and interest rates and all that. There's a lot of reason to think we could be close," said Kronenberg.
Watch the full video for more.
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