Economic forecaster Lakshman Achuthan is warning Wall Street that the market’s new highs don’t signal a revitalized growth cycle.
Achuthan, co-founder of the Economic Cycle Research Institute, believes it’s not an ideal environment for sustainable gains.
“All the optimism is really in these risk-on assets,” he said Wednesday on CNBC’s “Trading Nation. ” “When we look to the hard data, we see the slowdown. There is a deceleration in growth that has been going on. It’s continuing actually to occur, and that’s the disconnect here. ”
He takes his case a step further by highlighting a chart that shows industrial output and consumption slowdowns. It illustrates that their growth rates turned down in the second half of last year and never materially recovered.