Matterhorn Asset Management

No green shoots
There are no green shoots. Every single piece of economic and market news we observe confirms our view that the current optimism in the world economy is purely based on sentiment and not on facts.

The current corrective rallies in world stockmarkets were forecast by us in our January Newsletter. Corrective rallies create false optimism and hope. This is what we are seeing currently.

So, what indicators are telling us that things are going to get a lot worse:

Unemployment is increasing rapidly in all countries
Government deficits are rising at an accelerating pace
Many local governments, counties and cities are virtually bankrupt
Household finances are worsening rapidly
Bank balance sheets are as leveraged and
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