According to Jonathan Golub of Credit Suisse, the yield curve signals no recession until the year 2025.
Jonathan Golub, Credit Suisse chief U.S. equity strategist, joins 'Closing Bell: Overtime' to discuss bond market recession signals. For access to live and exclusive video from CNBC subscribe to CNBC PRO: » Subscribe to CNBC TV: » Subscribe to CNBC: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: #CNBC #CNBCTV ...(read more)
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According to Credit Suisse's Jonathan Golub, a prominent Wall Street strategist, the yield curve indicators suggest that there will be no recession in the United States before 2025. Golub's comments are a reminder that despite the recent deceleration in economic growth and some slowdown in global trade activity, there is still a lot of positive momentum building in the economy. For those unfamiliar with the yield curve, it is simply a graph that shows the yields on various U.S. Treasury securities plotted against their maturities. The yield curve is a crucial indicator of the overall health of the economy and has been used as a forecasting tool for decades. Typically, long-term yields are higher than short-term yields, which is known as a "normal" yield curve. This reflects the fact that investors demand a higher return for lending their money over a longer period. However, when short-term yields surpass longer-term yields, which is known as an "inverted" yield curve, it can indicate a recession is coming. That's because it signals that investors are more worried about the near-term future than the long-term. Several studies have shown that yield curve inversions have preceded every U.S. recession since 1950, albeit with some false signals along the way. But despite yield curve inversions looking like a warning sign, Golub believes that there's no need to panic just yet. In his words, "There's no sign of a looming recession, and our models indicate that one is unlikely to occur before at least 2025." He cites a number of factors that will support the economy in the coming years, including historically low unemployment, rising wages, robust consumer spending, and a strong housing market. Of course, there are risks on the horizon, such as mounting trade tensions, geopolitical uncertainty, and the possibility of a global slowdown. Nevertheless, the U.S. economy has remained resilient in the face of headwinds throughout this year, and it's entirely possible that it could continue to do so until 2025 and beyond. All in all, the yield curve provides a useful warning sign of a recession. However, as Credit Suisse's Jonathan Golub has pointed out, it's not the perfect forecasting tool, and economic conditions can change quickly. Right now, the curve is not giving any clear signals of an imminent downturn. That's good news for investors, individuals, and policymakers alike, as the prospect of a recession would leave everyone on edge. Instead, we can all look forward to a few more years of growth and prosperity. https://inflationprotection.org/according-to-jonathan-golub-of-credit-suisse-the-yield-curve-signals-no-recession-until-the-year-2025/?feed_id=91869&_unique_id=644a193e006f7 #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #ClosingBellOvertime #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews #RecessionNews #breakingnews #businessnews #cable #cablenews #ClosingBellOvertime #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews
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