Cathie Wood: Recession Warning... 4 Indicators to Watch...

Cathie Wood with ARK Invest was on CNBC and warned that the U.S. is already in a recession. We wouldn't officially find out whether we are or not until we have two consecutive quarters for GDP has declined.

I also shared 4 leading indicators that are very important to keep track of to have a better assessement of what's happening with the economy:

1. Unemployment: Major companies, especially in Tech and Real Estate like #Tesla, Facebook, intel, etc are pausing hiring. Compass and Redfin are cutting down by 8-10% of workforce. Unemployment leads to less production, lowering GDP.

2. Consumer Sentiment:
Consumer Sentiment right now is at an all time low. People are worried about a recession, which is causing them to spend less money. Credit card usage is going down. Less money being spent puts a further hardship on business growth and employment.

3. Gas Prices:
#gas and #oil prices have hit record highs in April and May at over $5 per gallon. Prices are coming down as demand is softening due to price increases. This will potentially help lower inflation as energy is a big part of the #consumerpriceindex #cpi

4. Real Estate:
#realestate is cooling off due to a sharp rise in interest rates. There was a 55% drop in mortgage applications YoY in May. Mortgage payment on a 400k loan would be an extra $617 today vs January. Affordability is going down pushing buyers out. Rents are rising sharply due to decreased supply and increased demand as more buyers have to rent due to lower affordability.

At times like this, it’s important to focus on what you know best and have discipline to stick to data and fundamentals.

#Realestate #recession #cathiewood