“More Shipping Hues”

As if what I wrote last week in “The Shipping Blues” wasn’t bad enough as an indicator of a slow global recovery, there is even more telling news.

There is startling information about Imports into the Ports of Los Angeles and Long Beach, the nation’s biggest port complex, which confirm my suspicions about the potential for a recovery. An article in the LA Times by Ronald D. White on Saturday, October 17, “Imports dive at the ports of Los Angeles and Long Beach,’ describes the worst slowdown at the two ports in 9 years!

I picked this information up from the Expected Returns Blog, “Imports Collapse in California.” You can read his summarized version of Ron’s article there. He also links to the LA Times piece.

This clearly adds concern for the holiday season, given that September is the busiest month of the year at the fifth largest shipping complex in the world. With the combination of the holidays and the rebuilding of inventories that is supposed to be occurring, the ports should be busier than last year. It is an obvious sign that the consumer has little appetite for consumption.

My concern is that we should be bracing for another decline globally, based on all the economic evidence that things will not be getting any better soon. I addressed these concerns in “The Shipping Blues.” Instead, we have analysts and economists, CEO’s, financial pundits, and the administration giving us partial information and telling everyone that everything is positive while expressing only muted concerns.

The Hues are changing in the economy. Right now changes in hues are better than changes in colors. It is definitely better than where we were headed just one year ago. But it may not yet be over.

It is abundantly important to protect yourselves in case the economy does not recover as fast as everyone hopes. Remain vigilant and do not become complacent.

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