BEN CASSELMAN and CONOR DOUGHERTY: Recent economic data show that long before the fiscal cliff hits, federal spending already is falling — and taking a toll on the recovery…….State and local governments are projected to receive $20.8 billion in federal stimulus funds in the 2012 fiscal year, ending in September, down from a combined $180.7 billion in fiscal 2010 and 2011, according to the Government Accountability Office……At the same time, military spending has fallen for three straight quarters as wars in Iraq and Afghanistan have wound down and as the Pentagon prepares for further budget cuts.
via Federal Spending Cutbacks Slow Recovery – 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.