Andrew Hunt, world leading International Economist, writes a monthly newsletter on the state of the world from an economic, and therefore investment, perspective.
The December 2015 topic is The Threat to Global Growth from Rising Inventories.
It must be remembered that 2015, like 2014 and 2013 before it, was supposed to be the year in which the US and indeed other consumers finally threw off the shackles of the Post GFC era and raised their level of spending on the back of falling energy prices and rising housing and property wealth. Instead, what has happened in reality is that households have devoted more of their cash and current incomes to ‘saving’ in the housing market and this has resulted not in a pickup in retail spending but the reverse. Indeed, compared to their previously quite well established post GFC trend, US retail sales seem to have been notably soft this year. Read the full article here