Kevin Gordon, Charles Schwab senior investment strategist, and Cameron Dawson, NewEdge Wealth chief investment officer, join 'Closing Bell' to discuss what's priced into the markets, Wednesday's price action and more. 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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As the global economy continues to grapple with the ongoing COVID-19 pandemic, there is growing concern among experts that markets are not adequately pricing in the possibility of an impending recession. According to Tom Dawson, the Chief Investment Officer at NewEdge Wealth, there are several factors contributing to this worrying trend. Dawson points out that despite the severity of the crisis and the significant economic downturn experienced in various sectors, stock markets have shown astonishing resilience. This disconnect between the real economy and the financial markets is puzzling, as traditional indicators suggest that a recession is looming. High unemployment rates, dwindling consumer spending, and a decline in corporate earnings all indicate a slowdown in economic activity, yet stock prices remain buoyant. One reason for this disparity, as Dawson explains, is the unprecedented monetary and fiscal stimulus measures implemented by governments and central banks around the world. These measures, aimed at cushioning the impact of the pandemic, have flooded markets with liquidity and propped up asset prices. The abundance of cheap money has lured investors to take on higher risks, creating a "risk-on" environment where even bad news is seemingly shrugged off. Additionally, Dawson highlights the role of technological advancements and shifts in investor behavior that may be distorting market perceptions. The rise of algorithmic trading and the dominance of passive investing have contributed to the detachment between financial markets and economic fundamentals. As more and more investors rely on complex algorithms and index-tracking funds, it becomes easier for market sentiment and momentum to overshadow rational decision-making. Moreover, Dawson emphasizes that the lack of visibility regarding the future trajectory of the virus and the potential long-term economic consequences further clouds market outlooks. As governments struggle to contain the spread of the virus and researchers race to develop an effective vaccine, uncertainty persists. This uncertainty is undoubtedly reflecting in the cautious stance of many investors, yet it has not translated into a significant correction in the markets. The consequences of the markets not pricing in a recession could be significant. If, indeed, a recession is on the horizon and markets continue to remain detached from reality, the eventual correction could be severe, potentially leading to a crash similar to the 2008 financial crisis. Furthermore, the mispricing of assets could create a false sense of security among investors, prompting them to take on even greater risks and exacerbating economic instability. In conclusion, the current disconnect between markets and the real economy is a cause for concern. Despite the overwhelming evidence pointing towards an imminent recession, factors such as unprecedented stimulus measures, technological advancements, and ongoing uncertainty have contributed to markets remaining seemingly unfazed. As the global economy grapples with the challenges posed by the pandemic, it is crucial for investors and policymakers to heed the warnings and ensure that markets adequately reflect the prevailing economic realities. Failing to do so could have far-reaching consequences for financial stability and the overall health of the global economy. https://inflationprotection.org/newedge-wealths-dawson-claims-that-markets-are-still-not-factoring-in-a-recession/?feed_id=115963&_unique_id=64abf5ea321a0 #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #ClosingBell #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews #RecessionNews #breakingnews #businessnews #cable #cablenews #ClosingBell #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews
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