What New Economic Recovery?

April 2, 2016

The rise of the 'dollar store business model' caters to a disappearing 'middle class' who are incurring shrinking incomes. This has made 'dollar stores' prosper, in the last decade. Dollar stores, for most Americans, have carried an odd sort of stigma. In the past, these stores were seen as shopping for the poor, only. We are all now aware that many people who were in the once strong American 'middle class' were thrown off of the prosperity path and into 'lower income' brackets from business layoffs, downsizing, and salary reduction. While regular product companies struggle the expanding 'dollar stores' have found a niche in this economic climate. The shrinking 'middle class' means more customers for 'dollar stores'.

A big part of the 'new recovery' is lining up at midnight at Wal-Mart stores in order to purchase food. There are families not able to feed their families by the end of the month. They are literally lining up at midnight at Wal-Mart stores, waiting to buy food along with their Electronic Benefit Transfer (EBT) Cards when their funds are deposited into their accounts.

EBT cards are an electronic system that allows state welfare departments to issue benefits via magnetically encoded payment cards, used in the United States. The average monthly EBT payout is $125.00 per person!

Common benefits provided (in the United States) via EBT, are typically of two general categories: food and cash benefits. Food benefits are federally authorized benefits that can be used only to purchase food and non-alcoholic beverages. Food benefits are distributed through the Supplemental Nutrition Assistance Program (SNAP), formerly the Food Stamp Program. Cash benefits include state general assistance, Temporary Assistance for Needy Families (TANF) benefits, and refugee benefits.

There appears to be a 'growing great divide' within the current U.S. economy. The financial sector is swimming in their 'bailout-induced profits'. Within their elite circles, it appears as if the 'recession' is over.

However, within the average American family, they are not experiencing available access to new credit cards, equity in their homes is vanishing and they do not have a store of available capital they can access like a 'stock portfolio'.

The table below clearly shows the middle class making less money year after year while the wealthy earn more each year. The money is slowly shifting from everyone to just the one-percenters - YIKES


In short, the average American is slowly earning less and becoming financially stressed about their future outlook.

If you are one of these hard working individuals experiencing a decline in business/income its best you do some research and change what you are doing because things will likely get much worse before they get better.

Mainly because of Trump thousands of Americans are looking to leave the country with the search term "How to Move to Canada" up over 1000% last month. While I love Canada, myself being a Canadian and all, there are many other great places to live and a very full life at a fraction the cost of Canada/USA.

There are many ways to preserve capital and also ways to grow it substantially no matter what the economy does and I share this information in the video on the home page of my Trading Newsletter Website.

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.  Chris’ mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility. Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication. Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P500 index, which solves his client’s biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market. He is the author of the popular book “Technical Trading Mastery – 7 Steps To Win With Logic”. He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. Chris is a graduate of Seneca College where he specialized in business operations management.

Gold prices fall by Rs 50 on low demand