Several new economic predictions and estimatesstarted doing the rounds with the arrival of the New Year 2013 that proposes a some significant economic and market events that we might experience in the approaching months. Although most financial predictions doesn't become real,some economic forecastscan indeed be true and by following those investors can takeeffective measures to safe guard propertyand investment during market collapse and/or earn better returns in the future. Here in this article we are making attempts to put forward two of the most talked about predictions that seems relevant with the current market and economic scenario and might be a reality in the upcoming months of 2013.
Global Economic Stabilization: One of the most prevalent presumptions among many economic prophets is that global economy will become stable in 2013. Currently the growth rate of the world economy is fixed at 2.6% and experts believe that won't be any major acceleration or deceleration of growth in the coming days. In 2010 growth rate was significantly high at 4.2% from where it started to decline with 3% in 2011 and 2.5% in 2012.
A major factor that contributed to this global economic decline is the onset of recession in major economies like Japan and the Eurozone. Global economic experts believe that most of Europe will continue to be under the grip of recession and debt crisis for the rest of the year, however accelerating economies of the United States and China will regulate global decline and the worldwide economic growth will be fixed at approximately 2.6% for the rest of the year.
Critical Warning Number Six: Another prediction that has created much buzz lately is Michael Lombardi's Critical Warning Number Six in which he predicts an upcoming downfall of the US economy and the stock market. US Economy was under recession in 2007 and 2008 and has been recovering since then. After a long recovery of almost 4 years, market is presently acting bullish with major investment sectors and stocks performing well and investors earning more profits from their investments.
But as per Lombardi's prediction, the current economic prosperity is a major indicator of an upcoming downfall since bullish market is not going to stay here forever and market will eventually come to a halt and then decline. History suggests that economic cycles comprises of economic growth followed by recession and then a period of recovery. Presently major sectors of the US economy have completely recovered from the 2007 recession and the whole economy is leaping to new heights. Therefore an upcoming recession seems evident and Lombardi's Critical Warning Number Six provides anoutlook to this approaching downfall.