Doom and gloom

From: Tom Cleary


America's economy grew by a sluggish annual rate of 0.7% in the second quarter. Consumer spending advanced 2.1% but business investment crumbled, falling by 13.6%, its biggest fall for nearly 20 years. The National Association of Purchasing Management index slid again in July, signalling that manufacturing activity had declined. Big companies' profits fell by 67% in the second quarter compared with a year before, the largest fall for more than a decade. (The Economist)
The American economy has never escaped a recession when these conditions have been present.
See Gerard Jackson at http://www.newaus.com.au/
on how these facts relate to Australia. So the question is, what is the best investment strategy in times like this?
Regards
Tom
 
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