Recession risk remain on minimal level

FED Recession Index


icon mailicon facebookTwitter iconGoogle iconicon hyperlink

The biggest question among traders since yesterday is "Is this a recession?". A large number of traders are wondering what has changed so much, to lead to this fall. The answer of economists, most of which monitoring the fundamental data coming from developed countries, is "Nothing". To a large extent, this is true.

"Recessions are preceded either by consumers or business, and in rare cases by both groups of economic agents." The recession occurs when one or both groups can not sustain their costs, "said Dubravko Lakos-Bujas, a strategist at JP Morgan.

As the future of the stock market is in the hands of the Fed, it is certain that members of the Monetary Committee will try to calm investors, claiming they do not see overheating of the economy. Looking at the Fed Recession Index makes it clear that traders have nothing to worry about. The value of the index is at times farther from that observed before the crises in 2008 and the Dot-com bubble in 2000. The other thing that is observed is that the index is currently rising sharply, unlike before the crisis in 2008.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

 Varchev Traders

Read more:

If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


Derivatives and margin trading involve a high degree risk level. You should not trade Forex and CFD unless you fully understand how it functions, what your benefits can be, what your risk is, and what you may lose. Please, note that the losses can be practically unlimited and that the initial deposit will not permanently limit the risk. You have to fully realize your financial status and make sure that trading in derivatives hides the risk of losing the entire amount invested. Invest only the amounts that you are able to lose.

chat with dealer
chat with dealer
Cookies policy