Prepare yourselves for what’s shaping up to be a massive recession and economic turmoil ahead.
The S&P 500 real inflation-adjusted earnings yield fell below zero setting a 40 year low according to Bloomberg. This is a big big deal.
This has become a key indicator for investors and economic advisors for decades. When it drops below zero – it means we are too late and already in a recession.
The last 3 times it dipped below zero were:
2008 – The Subprime Crisis
2000 – The Dot-Com Bubble
1987 – Black Monday
All significant economic recessions followed by years of economic hardship.