1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

ECRI Still Sticking with Recession Call

December 09, 2011 | About:

Last time we reviewed the ECRI call for a recession we noted Lakshman Achuthan saying it will be obvious in retrospect and usually their calls are 6-ish months early - i.e. the data has to be revised down the road to reflect reality. Wall Street has been mocking this call of late as the "meh" data continues to come in domestically, rather than data points that signal recession. The opening question in this Bloomberg interview yesterday pretty much sums up the attitude of the "what have you done for me lately, instant gratification" crowd. It is sort of funny.

Outside of the economic data, bulls point to the continued strength in corporate earnings and the lack of warnings from corporations who in theory have better sight lines on what is happening than anyone else. Well guess what has recently been changing? I neglected to mention both Texas Instruments (NASDAQ:TXN), and Altera (NASDAQ:ALTR) warned last night - so both chemicals and semis have seen a change in condition very recently. Both of these groups are 'deep cyclicals'. Somewhere this morning the folks at ECRI need to be smiling.

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

Rating: 3.5/5 (8 votes)


Please leave your comment:

GuruFocus has detected 3 Warning Signs with Texas Instruments Inc $TXN.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by TraderMark

User Generated Screeners

WellrossKeep TTM Low OPB
WellrossCannabis Companies
liongdUS Tech
tarun1Deep Value KOREA
Wellrosskeep Single Digit 1 TTM PE and
Wellrosskeep Single Digit TTM PE and L
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat