Tony Dwyer from Canaccord predicts high possibility of U.S. economy entering recession in upcoming months
Canaccord Genuity's Tony Dwyer makes sense of today's market action. With CNBC's Melissa Lee and the Fast Money traders, Courtney Garcia, Karen Finerman, Dan Nathan and Guy Adami. 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 Canaccord's chief market strategist Tony Dwyer, it is more probable that the United States' economy will fall into recession in the next few months. As of now, the U.S. has officially entered the longest economic expansion in history since the end of the Great Recession ten years ago. However, several key indicators are pointing towards an impending downturn. Dwyer believes that the primary reason for the potential recession is because the U.S. Federal Reserve and other central banks worldwide have not cut interest rates enough to offset the current global slowdown. In addition, the ongoing trade war with China and other countries, as well as the geopolitical tension in the Middle East, have made investors increasingly nervous and unstable. He also said that the yield curve inversion, a phenomenon where long-term bond yields fall below short-term yields, can signal a coming recession. The curve inversion has historically been a strong indicator of an oncoming economic downturn. And when it comes down to the U.S. Treasury yield curve, an inversion has preceded every recession in the past 50 years. The stock market is also sending warning signs, as the S&P 500's earnings have been slowing down over the past couple of quarters. When earnings begin to slow down, it can often mean that companies are struggling to grow their revenue and may have to cut back in order to maintain their bottom line. Furthermore, Dwyer adds that the U.S. economy is already at a disadvantage because of the sluggish growth of other economies worldwide. Emerging markets, which were once considered to be the driving force behind global growth, have also deteriorated, creating a downside for the U.S. economy. While no one can predict with certainty whether a recession will happen or not, it is worrisome that several key indicators are pointing towards an impending downturn. According to Dwyer, investors should consider taking a more defensive stance with their stock market portfolios and focus on companies with strong cash flows, good dividends, and dividend growth. It is crucial for policymakers and central bankers to take heed of these warning signals and take steps to minimize the impact of an oncoming recession. It remains to be seen whether the global economy will be able to cope with the potential repercussions of a U.S. recession. https://inflationprotection.org/tony-dwyer-from-canaccord-predicts-high-possibility-of-u-s-economy-entering-recession-in-upcoming-months/?feed_id=85996&_unique_id=64324b5038528 #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #CNBC #FastMoney #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews #RecessionNews #breakingnews #businessnews #cable #cablenews #CNBC #FastMoney #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews
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