On August 4, 2019, we said the following:
“A trend doesn’t define the future prospects. However, we believe that the declining trend has not completely played out. This means that we expect that the economy and stock market will languish, in the best case scenario.”
When you combine Charles H. Dow’s consumer sentiment indicator, the Dow Jones Industrial Average on a year-over-year basis, with Dow Theory we see that all indicators have been in place for the decline that we’ve seen so far.
The only question that remains is how far will the decline extend? We’re working to generate a measured response to this question.