Excerpt from Nasdaq’s latest article quoting DataTrek co-founder Nick Colas:
….. “While that may sound like a downer, what a difference a decade makes. Just about ten years ago, we were staring down the collapse of Lehman Brothers. Yet, as we approach the anniversary, DataTrek’s Nicholas Colas writes that while Lehman’s collapse may be the only thing we remember, it was hardly an island of trouble.
“The reality about 2008 is that the US was on track to see a recession regardless of what happened with Lehman. Oil prices had doubled from June 2007 to the same month in 2008 and sat at $140/barrel. That’s exactly the sort of spike that always drives a US (and usually global) economic slowdown.” We may only talk about the financial crisis today, forgetting the rest, but the “truth is that the global economy was already on very shaky ground.”
Therefore, today’s ongoing strong fundamentals may be overwhelmed by negative headlines, but they’re a reminder that we’re still in a much better position than many think”…..
Read the whole article here on Nasdaq!