SOURCE: Jerome Levy Forecasting Center

Jerome Levy Forecasting Center

December 18, 2015 10:00 ET

Levy Says Economic Situation Belies Market's Confidence

Economist Exhorts Investors to Go on "Defense" and Act Now to Strategically Adjust Portfolios

MOUNT KISCO, NY--(Marketwired - December 18, 2015) - Economist David Levy, writing in the just-published December issue of The Levy Forecast®, cautioned that despite subdued market perceptions of economic risk, "the global economy has been weakening and its financial stability eroding in salient ways."

Levy, chairman of the independent Jerome Levy Forecasting Center, LLC (www.levyforecast.com), exhorted investors that they "may not have another chance as good as the present one to make strategic adjustments to portfolios" that will both protect against losses and potentially profit from "the coming economic turbulence."

Writing in the nation's oldest publication devoted to economic analysis, Levy continued to suggest that after the federal funds rate hike this month, "the Fed will not raise interest rates much and will find itself reversing direction later in 2016." In fact, the December Fed rate hike "may well mark a high point in economic expectations for 2016."

Policymakers and market participants may be relatively sanguine at present but, said the economist, "most likely, concerns about the economies of China, the rest of the EMs, the euro area and the United States will be much greater at the end of the winter than at present."

Levy concluded that, "The EM overexpansion is the housing bubble or Nasdaq bubble of this business cycle. The financial connections and the potential for transmitting financial shocks will become visible to most observers only after it is too late."

About The Jerome Levy Forecasting Center

The Jerome Levy Forecasting Center LLC -- the world leader in applying the macroeconomic profits perspective to economic analysis and forecasting -- conducts cutting edge economic research and offers consulting services to its clients. The goal of the Levy Forecasting Center is to improve its clients' business and investment performance by providing them with powerful insights into economic risks and opportunities -- insights that are difficult or even impossible to achieve with conventional approaches to macroeconomic analysis. Additional information may be found at www.levyforecast.com.

Note: The full Levy Forecast is available to the press in PDF format by contacting Andrew Edson & Associates, Inc. - Andrew@edsonpr.com or 516 850 3195.

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