Durable goods orders reported the week of June 23, 2014 tumbled 1 percent, so far the biggest miss in 2014. On a year-over-year basis, durable goods are negative, not great news for second quarter GDP. The truth is we are now living on borrowed time. The U.S. GDP is the worst it's been in five years. The U.S. employment participation rate is the worst it's been in 37 years. The number of U.S. food stamp recipients is now over 50 million Americans, and somehow the S&P 500 hits a new high. It just doesn't add up.
Investors need to ground themselves and remember the crash of 2008, because just like back then, there were harbingers of the correction to come. Investors need to be cautious because there are plenty of signs coming from both the market and the economy that vigilance is a wise choice at this time. Portfolios don’t have to drop 35 or 50 percent like back in 2008.
Dawn Bennett is CEO and founder of Bennett Group Financial Services. She hosts a national radio program on www.WMAL.com called Financial Myth Busting. She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett or [email protected]. Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients as they seek long-term financial success. Its customized programs are designed with the potential to help grow, conserve and lower overall risk of client assets by delivering a high level of personalized service and skill.