Mark Newton, Fundstrat global head of technical strategy, joins ‘Closing Bell’ to discuss his take on energy, which he thinks could bottom soon, why recession could not be avoided and more….(read more)
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The COVID-19 pandemic has wreaked havoc on the global economy, leaving many wondering if a recession is imminent. However, according to Mark Newton, managing member at Fundstrat Global Advisors, a full-blown recession could potentially be postponed but cannot be avoided completely.
Newton recently published a report titled “Risks and Opportunities at Mid-Year,” which explores the current state of the economy and the potential for a recession. According to the report, the U.S. economy is in a fragile state, with the pandemic having caused significant damage to industries such as hospitality, travel, and retail.
However, Newton believes that the massive amounts of government stimulus and low interest rates could help to delay a recession. The Federal Reserve has already implemented measures such as cutting interest rates to near-zero, providing liquidity to financial markets, and implementing lending programs to keep businesses afloat.
These measures have helped to prevent a complete economic collapse, evidenced by the U.S. stock market’s recent rally. The S&P 500 has gained over 40% since its low in March, and some sectors, such as technology, have reached new all-time highs.
However, Newton warns that the delay of a recession is not a guarantee, as there are still several factors that could lead to an economic downturn. For example, the continued spread of COVID-19 could result in further lockdowns, leading to more job losses and a decrease in consumer spending.
Additionally, tensions between the U.S. and China could escalate, leading to trade disputes and tariffs that could harm the global economy. The upcoming U.S. presidential election also introduces uncertainty, as a change in leadership could result in a shift in economic policies.
Despite the potential risks, Newton remains cautiously optimistic about the economy’s ability to recover. “While we don’t expect a return to pre-pandemic levels of economic activity any time soon, we believe that the worst may be behind us,” he wrote in the report.
In conclusion, while a recession may be postponed, it cannot be avoided completely. The global economy is facing unprecedented challenges, and it is crucial to remain vigilant and adapt to the ever-changing economic landscape. By staying informed and making informed decisions, individuals and businesses can weather the storm and emerge stronger in the long run.
I'm not even kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement.
I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it,Investing is a long-term game, so I try to focus on the long term.
With the way the market is moving, we'll mostly hold for longer than 2030 to realize profit gain, I think a video on "How to profit from the present market" will be more effective, I mean I've heard of people making upto 250K within few months and I'd like to know how.
I still blame the FEDs for this, because in the end they benefit by either buying off the failed banks cheaper or something. The fed can print credit as long as someone will borrow it into existence, but they cannot print product (or production).
What are these people at fundstrat smoking ?
Welcome to Brandon's America
A powerful coincidence is preparing in the US. Expansion, bank breakdown, serious dry season in the horticultural belt, downturn, real estate market decline, bank emergency, food deficiencies, diesel fuel and warming oil deficiencies, child recipe deficiencies, accessible car deficiencies and costs, the cost of residing place. It's all approaching together and it could prompt a genuine calamity towards the finish of this current year (or sooner). With expansion at present at around 6%, my essential concern is the way to expand my reserve funds/retirement asset of about $300k which has been exposed target since perpetually with zero to no increases.
This recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.
He is basically saying Biden is trying to push the recession to the future perhaps after he wins the second term
He works for Tom Lee…don't forget that.
THOMAS LEE! BITCOIN $100K!!!!!!!!!!!!!!!!
Mark is smart.
I'm really worried about the current bank crisis. If a bank as big as SVB could fail, I fear for a lot more. I know a friend who is running a high-growth startup, and was badly hit by the bank run. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to$250,000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?
Judging by the comments I’m not even going to bother. If we missed to recession, the war would end.
The market is completely detached from the economy
We are in a recession under the true definition since time and memorial, these people are idiots.
Does he know that he is calling for higher inflation which means higher rates or hyper inflation?
Bullish call on energy during recession, right!
Stagflation if it’s avoided! Keep raising rates and let the banks fail
This guy gives Cramer a run for his money.
Are these guys putting money on the calls theyre making? I feel like his, and especially Tom Lee's calls have been catastrophic.
This guy is awesome. Ignore him at your own peril.
Within every crisis is the seed of opportunity, Although we are experiencing a global recession, which is characterized by a decline in annual global per capita income, is relatively uncommon due to the faster growth rates of emerging markets like China, in comparison to developed economies. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to $250,000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?
This guy is part of the pump and dump scheme that has been running in the stock market for the last couple of years.
These people living in their ivory towers, don't even want to acknowledge that we've been in a recession for 2 years now..
It's know wonder the country if going under..
All this great news…………….kinda odd our time we are in right now. Does he work for Brandon?
The other shoe hasn't even dropped yet. There will be a huge fallout when business to business off balance sheet loans come due
To destabilize a country needs money, so how you get ? by inflation and raising taxes in your own country, now invented to go after banks too, such a hippocrates.
Ask him to come when market sells off )
What about the AI elephant in the room? Will it lead to more equality due to menial jobs being replaced with AI? No. Capitalism demands efficiency in generating profit, no matter the cost to everything outside profit, such as social welfare and well-being.
way to go out on a limb
More like the recession will be in Hindsight
Fundstrat guys are a prime example that ignorance has no boundaries!
Didn't this guy said rally to 4400??