More evidence that imposing fiscal austerity while the private sector is deleveraging will aggravate rather than cure the problem. From WSJ.com:
The [UK] economy shrank 0.7% between April and June, dragged down by weakness in the construction industry, according to official data released Wednesday.
An extra day’s holiday in June for the Queen’s Diamond Jubilee had a significant negative impact on the economy, the data showed, but an official said it was too early to quantify the full effect at this stage. Unusually wet weather during the quarter may also have played a role.
It is the third quarter in a row that gross domestic product has shrunk and the largest quarterly contraction since early 2009.
via U.K. Stumbles, Fueling Austerity Debate – WSJ.com.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.