Michael Cembalest, chairman of market and investment strategy of JPMorgan, doesn't think a recession is as inevitable as the market seems to think.
simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.
But not all are convinced that a day of reckoning in the US economy is upon us — and one prominent investment strategist thinks the market is overlooking underlying strength. The US yield curve"is not as reliable a signal at a time when 70%-100% of European and Japanese government bonds trade at negative yields, driving up demand for long duration US assets," he said in a recent client note.
Against that backdrop, Cembalest provides three reasons he thinks the US will side-step a near-term economic catastrophe.With unemployment hovering around a 50-year low, and wage growth pushing above 3%, the US consumer remains a strong, foundational component of economic growth. Remember, consumer spending accounts for about 70% of GDP. Without a material slowdown in spending, a recession is unlikely to rear its ugly head.
The graph below shows how multinational corporations are side-stepping the impact of US tariffs in China.As a plethora of global central banks continue to demonstrate their willingness to cut interest rates, Cembalest sees a rebound in manufacturing coming down the pike.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
POLITICO Playbook: What tonight could tell us about 2020Tonight, Republican Dan Bishop and Democrat Dan McCready will finally face off in North Carolina’s 9th Congressional District. Whoever wins this race, there’s going to be a LOT of spin. So we wanted to decode what you’ll hear tomorrow, today:
Read more »
The US lobster industry latest to get caught in the US-China trade warCNBC's Contessa Brewer reports from Kennebunkport, Maine on how the U.S. lobster is the next item to get caught up in the U.S.-China trade war.
Read more »
U.S. military likely to ramp up operations against Taliban: U.S. generalThe U.S. military is likely to accelerate the pace of its operations in Afghanis...
Read more »
U.S. military likely to ramp up operations against Taliban: U.S. generalThe U.S. military is likely to accelerate the pace of its operations in Afghanistan to counter an increase in Taliban attacks, a senior U.S. general said on Monday following Washington&39;s suspension of peace talks with the insurgents. U.S. Marine General Kenneth McKenzie, the head of U.S. Central
Read more »
U.S. tech firms tell Congress: Pass U.S.-Mexico-Canada trade pact nowEleven trade groups on Monday urged U.S. lawmakers to pass the U.S.-Mexico-Canad...
Read more »