U.S. GDP grew by 4.9% at an annual rate in the third quarter of the fiscal year, defying a multitude of expectations of a slowdown. Some believe that a recession is on the way, as economic headwinds continue to spook investors and Treasury bond yields spike. Canaccord Genuity Chief Market Strategist Tony Dwyer is one such person, claiming investors need to brace for that eventuality. He joins Yahoo Finance anchors Julie Hyman and Josh Lipton to give insight into what he believes to be an inevitability.
Dwyer postulates that a recession will be necessary to finally get the Fed to make major changes: “Earlier this week, we made [a] new cycle high for bond yields. So, that to me is the real differentiator, is what gets the Fed to change their tone enough that you get those other instruments to have a significant rally that kickstarts and now improved outlook for money.”
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BREAKING: Recession News

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There’s ‘no chance’ we avoid a recession, strategist says

As the global economy continues to grapple with the impacts of the COVID-19 pandemic, a prominent strategist has warned that there is “no chance” of avoiding a recession.

Speaking to financial news outlet Bloomberg, Sonal Desai, chief investment officer of fixed income at Franklin Templeton, expressed her pessimism about the prospects of the global economy in the face of widespread shutdowns and disruptions.

Desai pointed to the unprecedented nature of the current crisis, noting that the combination of a public health emergency and an economic meltdown has created an extremely challenging environment for businesses and governments around the world.

“We have seen these types of disruptions before, but not two at the same time – never have we had a global pandemic and a demand collapse,” Desai said in the interview.

She emphasized that even as countries begin to gradually reopen their economies, the road to recovery will be long and arduous, with many industries likely to continue to struggle for the foreseeable future.

Desai’s assessment is in line with the predictions of many other economists and analysts who have cautioned that the world is headed for a global recession.

The International Monetary Fund (IMF) has already declared that the global economy has entered a recession, and the organization’s chief economist has warned that it could be “way worse” than the 2008 financial crisis.

In the United States, the Federal Reserve has also made grim predictions about the prospect of a severe recession, and policymakers and economists are grappling with the best ways to mitigate the damage.

Desai’s comments are a sobering reminder of the enormous challenges facing the global economy in the months and years ahead.

However, she also emphasized that there are opportunities to be found amid the crisis, particularly in the realm of sustainable investing and technological innovation.

“It’s really rewarding to see the amount of technology and other solutions that are being designed and developed to help us address this crisis,” Desai said.

In the face of such dire predictions, it is crucial for governments, businesses, and individuals to remain vigilant and adaptable as they navigate the uncertain economic landscape. With careful planning and proactive measures, there is a chance to weather the storm and emerge stronger on the other side.