A Recession on the Way?

The ABC has been arguing that a recession might be on the way.

Karl Marx prophesied that capitalists would drive down wages till a point that the workers could no longer afford the goods that were being produced. Capitalism would eventually destroy itself. 2018 saw the 200th anniversary of his birthday. 

China has been the great engine of prosperity, but the Chinese economy has been slowing down.

The Nasdaq is not the only the part of the market in distress says the New York Times this week. The Russell 2000 index, which tracks shares of smaller companies, entered a bear market earlier this week. Seven of the S&P 500’s 11 industrial sectors are also at the level, led by energy stocks, which are down 28 percent from their highs earlier this year. That’s in large part because crude oil has been in a bear market since November.

Equities have looked overvalued in the US and this correction is inevitable. 

Meanwhile in the UK: 

According to a Guardian article: Up to 85,000 retail jobs disappeared from Britain’s high streets in the first nine months of this year after a surge in the number of businesses going bust and closing stores.

Nearly 1,000 retail businesses – from big employers such as House of Fraser, Evans Cycles and Poundworld to independent traders – went into administration between January and September, according to new data seen by the Observer, the highest number in five years. A further 26 big companies, including New Look, Carpetright, Mothercare, and Homebase, opted to close stores or cut rents using an insolvency procedure known as a Company Voluntary Arrangement – up 73% on the same period last year.

The figures raise further fears about the future of Britain’s high streets, where the number of premises lying empty soared by more than 4,400 in the first six months of 2018, according to retail analysis figures.
Christmas is make-or-break for many retailers.

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