Recent reports have sparked concerns as multiple indicators paint a grim picture for the economy. In line with JP Morgan’s data, hedge funds are observed to be drastically reducing their long exposure, reflecting an unprecedented level of caution in financial markets. Meanwhile, the trucking and freight industries are showing signs of a severe downturn. With indications of recession including soaring bankruptcies, layoffs, and plummeting volumes, the situation is raising red flags for economists.
A major player in the global shipping industry, Maersk, has made a significant move by laying off 10,000 employees. This alarming shift has led some analysts to declare that globalization might be on the brink of a breakdown. An alarming observation points out that the current state of trucking employment is notably worse than the recessions of both 2000 and 2008, indicating a severe downturn, echoing troubling signs of a potential economic crisis.
Hedge funds have been aggressively reducing long exposure recently, according to JP Morgan data pic.twitter.com/bCDLw9uAdX
— Markets & Mayhem (@Mayhem4Markets) November 12, 2023
Recession shadow indicator trucking and freight are already in recession with soaring bankruptcies, mass layoffs, and crashing volumes. Bellwether Maersk just laid off 10,000 workers, leading one major analyst to declare globalization is "broken."
Trucking employment is doing 3… t.co/Hl0lDyHW6Y
— Wall Street Silver (@WallStreetSilv) November 12, 2023