Thursday, June 3, 2010

Citigroup (NYSE:C) Sees Economic Troubles Ahead

Although the mainstream media is attempting to spin some type of recovery, an increasing number of economists and analysts see something different, including some from Citigroup (NYSE:C), who are starting to have a much different take on the situation.

Citigroup analyst David Thurtell said this, “China is cooling from very strong levels, the European recovery threatens to stall, and the U.S. is leveling out.”

Other than that, everything is going fine I guess, at least if you believe news reports.

This is already starting to make a major impact on commodities companies who had especially been looking to China to drive revenue and earnings growth. That has all changed from their efforts to curb their property market which has generated high inflation.

Take it all together and there's no way it can be spun to make it look like we're in a recovery.

The days of being able to count on providers or raw materials to be certain winners are over. We need to comb through data much more closely going forward, as some commodities will do better than others, along with those companies with strong exposure to them.

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