From Burberry to Hugo Boss, from Cartier to Tiffany, foot traffic is down, profits are slumping, stores are closing and markets are shrinking. Across the luxury spectrum, beyond jewelry, watches and valuable gifts that are among the worst performers… even sales of luxury apartments are falling some 20 percent in prime real-estate markets around the world.
At the top of the retail top, gold and diamond jewelry sales, two key trend indicators that signal both a weakening global economy and ensuing economic turmoil, continue to worsen. While the luxury-retail sector blames soft sales primarily on a decline in tourism, unstated in corporate fiscal reports is that the reason tourism is down is a direct consequence of the worsening global recession we forecast as a Top Trend of 2016.
The Federal Reserve operates the largest printing press on the planet. It seeks to hire the most qualified people to address current economic conditions and design strategies to maximize future market potential. However, when crisis strikes and with global equity markets in turmoil, those hired admit they are out of touch with the present and blindsided by the future. As minutes from their own meetings show, when the Panic of '08 hit, which the Trends Research Institute forecast and named, the Fed was blindsided. Were they stupid then, or just playing stupid? Today, from China’s economy growing at its slowest pace in a quarter century, Japan sinking back into recession, Europe’s stagnant Gross Domestic Product, Asian economies jolted by plummeting exports, emerging-market economies and currencies crashing, commodity indexes gyrating between 1991-to-1999 lows, etc., the “outlook” is clear: Global Recession. What's the Fed's position? Fed Vice Chairman Stanley Fischer recently said Fed officials “simply do not know" what course of action to anticipate since “it is still early to judge the ramifications of the increased market volatility of the first seven weeks of 2016."
Are they stupid, or playing stupid by not seeing the Panic of 2016