posted on Aug, 27 2007 @ 09:14 AM
Given the current solidity in the "basics" of the world economy, that is increased company profits, reasonable P/E ratios on company shares, I'm
not entirely sure a recession in the US or any other major economy will occur in the medium term.
After this period of time (18-24 mths plus) there MIGHT be individual circumstances in either the US or Europe (mainly) or possibly Asia (unlikely),
but I believe any serious economic downturn will have its roots in geopolitical troubles, not economic troubles.
War with Iran and potentially its allies and so forth.
The US would be foolish to act against Iran, because it would only have Israel, possibly the UK. and definitely not Australia after our elections in a
few months onside...
To go after Iran would only serve to isolate the US AND its economy from the rest of the world...Investors hate nothing more than political and
financial instability in the countries they wish to invest in.
The US would be smart to heed this well in the coming 6 mths or so...