The July 2012 ISM report just came out and the the number came in at 49.8 versus the June number of 49.7.
The ISM report is a general measure of manufacturing activity and specifically how much manufacturers are planning in procuring for the business. A number below 50 indicates negative or contractionary environments. The ISM numbers were below 50 for the last two months which is a very clear contractionary signal.
What does this mean for Self Directed IRAs?
The contraction of the ISM numbers supports a series of other economic values which shows that the economy is not only slowing, but may actually be entering or have entered into a recession.
Recession is the perfect cover for the Fed to engage in more stimulus via printing. These policies will lead to inflation, weak demand. This is the type of environment in which you need to be holding precious metals and other hard assets such as real estate in your self directed IRA.
Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.