John Zechner, chairman and founder of J. Zechner Associates, joins BNN Bloomberg to discuss higher interest rates for longer period of time to tame inflation. He also talks about bond markets signalling a recession.
Subscribe to BNN Bloomberg to watch more videos:
Connect with BNN Bloomberg:
For the latest news visit:
For a full video offering visit BNN Bloomberg:
BNN Bloomberg on Facebook:
BNN Bloomberg on Twitter:
BNN Bloomberg on Instagram:
BNN Bloomberg on LinkedIn:
—
BNN Bloomberg is Canada’s only TV service devoted exclusively to business, finance and the markets….(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
There’s no way we can possibly avoid a recession: Portfolio manager
The global economy has been in tumultuous waters in recent times, and it seems that the storm is far from over. With various indicators flashing warning signs, there is a growing belief among portfolio managers that there is no way we can possibly avoid a recession.
One such portfolio manager, who has had an impressive track record of predicting economic downturns, has weighed in on the matter. According to him, the global economy is facing multiple challenges that make a recession inevitable.
First and foremost, he points to the ongoing trade tensions between major economies, notably the United States and China. The tit-for-tat tariff wars have already started to take a toll on global growth, with businesses on both sides feeling the pinch. The uncertainty surrounding trade policies has led to a decline in business investments and disrupted global supply chains, further exacerbating the economic slowdown.
Secondly, the portfolio manager highlights the growing debt burden across the globe. Governments, corporations, and individuals are all grappling with mounting debt levels, which can act as a drag on economic growth. As interest rates rise, servicing this debt becomes increasingly challenging, potentially leading to defaults that can trigger a domino effect across the financial system.
Moreover, many countries are experiencing demographic challenges. Aging populations and declining birth rates have serious implications for economic growth. With fewer workers entering the labor force and a large portion of the population nearing retirement age, productivity levels are at risk of stagnation, putting a burden on social welfare systems and reducing overall economic output.
Adding to these concerns, the portfolio manager also highlights geopolitical risks. From political unrest in various countries to the uncertainty surrounding Brexit, these factors contribute to a climate of uncertainty and can further dampen economic activity.
It’s important to note that while this portfolio manager’s insights are valuable, they are not guaranteed predictions. The future is always uncertain, and it is nearly impossible to accurately forecast the timing and severity of a recession.
That said, it would be wise for investors and individuals alike to adopt a cautious approach. Diversification, maintaining a robust emergency fund, and focusing on long-term investment strategies become essential during these uncertain times.
Central banks and policymakers also have an important role to play in mitigating the impact of an approaching recession. Proactive measures such as cutting interest rates, stimulating domestic demand, and promoting fiscal discipline can help soften the blow and support economic recovery.
In conclusion, the warnings coming from portfolio managers about an impending recession should not be taken lightly. While an exact timeline is difficult to predict, the multiple headwinds facing the global economy suggest that a recession is a real possibility. Being prepared and adopting prudent financial strategies can help individuals and businesses weather the storm, should it arrive.
Really? Energy stocks like Exxon Mobil are acting like we are already in a recession up over $100/share?
Not getting a recession would be the worst case scenario!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
According to certain economists, there are projections indicating the possibility of the United States and certain parts of Europe experiencing a recession during a portion of 2023. While a global recession, which refers to a decline in annual global per capita income, is relatively uncommon due to the faster growth rates of China and emerging markets compared to developed economies, it is important to note that if economic growth lags behind population growth, the world economy is generally regarded as being in a recession.
They want to slow down the car but people don't care. Ask driver drive faster faster.
So, the driver is now giving an warning that we all goint to die if you keep spending money.
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
Inflation has already sank its teeth on everything.
People won't be able to bear all of this any longer so yes naturally a correction is coming. When? Who knows? It's anybody's guess. How bad? Still…it's all psychological
We need a recession….too much free money was printed in the last 3 years. Time to Cut the FAT !
Recession fears mount on Wall Street and inflation remains well above the Fed's 2% target, some of the top commentators in markets, business, and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60.
Recession is defined as two consecutive quarters with negative growth… where are they?
He is quite right on many points but he again misses the mark. He finished by saying stocks are expensive, but earlier he divided stocks into two parts, mentioning energy already hit but tech way expensive. First specific then general. That’s wrong.
Theres a lot of stimulus in the system and its being spent in a crazy manner this summer on vacations and by genz lack of financial context in the world. After the vacation session ends we will be in full blownout recession becuse the middle class will be crying their pockets. Lack of financial education is increasing and human psychology can go as farther as people continue to be stupid and spend way much than what they have. Its a great time to invest long for a young men.
We havent seen a real recession since the 80s, 2 generations of idiots are about to get merked.
I still think that recessions are caused. Tighten credit, while everyone is overleveraged on mortgages. They also strategically inject inflationary spending. Its just a game. Shooting fish in a barrel.
The funny thing is this recession is man made and being forced on us. Shouldn’t we try to avoid this. Strange times!!
The only thing keeping Canada out of recession in aggregate is asinine levels of immigration. Even that can't save our policy makers from the mess of their own making.
At last someone with sense
Agreed. Thank you.
Refreshing to hear some truth.
One needn't look any further than the percentages of Canadian GDP that is entirely reliant upon DEBT instrument expansion…. to then SEE the absolutely unsustainable metric from here on out ?
Canada/Canadians have flat out run their TOTAL GDP of $2.05 Trillion…..
right straight into an immovable $2.8 Trillion WALL of DEBT instruments of their own making…. and it ain't budging !
Time to deleverage folks…… and BTW, that overpriced $1 Million McMansion you thought was an ever expanding ATM is now not merely just closed ?….
but it's midnight and tomorrow it's back to being just another high maintenance pumpkin you gotta actually PAY for !
The pandemic benefits ended years ago – when are these rich bastards going to realize that?