Rashmi Garg, senior portfolio manager at Al Dhabi Capital, joins from the sidelines of the Sohn Conference in London to discuss the market outlook for 2024, the possibility of a recession, and where she foresees strong positions in the stock market….(read more)

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The United States economy has been on a rollercoaster ride in recent years, with fluctuating stock markets and mounting tensions over trade and tariffs. Now, some experts are predicting that the U.S. is likely to fall into a recession next year, and the ripple effects could be felt around the globe.

One such group sounding the alarm is Al Dhabi Capital, a prominent investment firm with a global perspective. They have been closely monitoring the economic indicators and trends, and their analysis has led them to the conclusion that a recession is on the horizon for the U.S.

There are several factors that have led Al Dhabi Capital to this prediction. One of the most significant is the ongoing trade war between the U.S. and China. The tit-for-tat tariffs and escalating tensions between the world’s two largest economies have already had a destabilizing effect on global markets, and the uncertainty surrounding the future of trade relations is a major concern for investors.

Additionally, there are signs that the U.S. housing market is cooling off, with home sales and construction slowing down. This is a key indicator of economic health, as the housing market is closely tied to consumer spending and confidence.

Furthermore, the Federal Reserve’s recent interest rate cuts have raised some eyebrows, as they are often seen as a preemptive measure to stave off an impending recession. While lower interest rates can stimulate economic activity in the short term, they can also indicate that the Fed is concerned about the outlook for the economy.

Al Dhabi Capital’s warning should serve as a wake-up call for policymakers and businesses alike. If the U.S. does fall into a recession next year, it will have widespread implications for global trade, supply chains, and financial markets.

For investors, it may be prudent to take a defensive stance and allocate assets in a way that hedges against the potential fallout from a recession. Diversification and a focus on defensive sectors such as utilities, healthcare, and consumer staples could provide some protection in a down market.

Ultimately, it’s impossible to predict the future with certainty, but the signs are certainly pointing toward a rocky road ahead for the U.S. economy. With global growth already slowing down, a recession in the world’s largest economy would only compound the challenges facing the global economy. It’s crucial for businesses and investors to stay vigilant and be prepared for whatever may come in the year ahead.