These New Numbers Could Spell Trouble – As Explained by Lark

Economic gauges like the Producer Price Index (PPI) and Consumer Price Index (CPI) often make markets jittery when released, as they signal how the overall economy is faring.

📰 The latest PPI showed higher-than-expected producer price increases, potentially foreshadowing rising consumer inflation down the line. However, the CPI increase came in lower than feared at 0.3%, causing a “relief rally.”

🤔 Retail sales data indicated stability in consumer spending habits, a positive sign. But the Philadelphia Fed Manufacturing Index dropped sharply, though still expansionary, hinting at a potential slowdown.

🏦 Lark acknowledges the real economy is struggling under the weight of high debt, low savings and soaring interest rates acting as an “economic steamroller.” While not an immediate disaster, he warns the next recession could be severe after this prolonged market cycle eventually turns.

His advice? Take profits while possible, as hard times can hit “fast and hard,” imperiling the unprepared. Make smart moves to protect yourself from years of potential economic pain when the inevitable bust arrives.