#recession #youtube #stockmarket
If you’re looking at the signs, it’s evident we’re moving ever closer to a recession. That’s according to Sam Stovall, Chief Investment Strategist at CFRA Research. He joined Rachelle Akuffo on Yahoo Finance Live to share his outlook for the market ahead. Even with a strong performance by the S&P 500 (^GSPC) this year, earnings overall were down by about 4% in the fourth quarter and are expected to dip further, down 6.5% in the first quarter of 2023. Stovall says that steady decline in earnings implies that a recession is not far away. Stovall says the real question is how deep the recession will be. That will be determined by how long, and how much, the Fed raises interest rates. Although the street consensus is one more, 25bps rate hike in May, CFRA Research predicts two rate hikes. And after those hikes, investors can expected to wait until 2024 to see interest rates decline again, according to CFRA Research. Enthusiasm around the market “will be toned down a bit” heading into the more challenging stretch between May and October. But, Stovall remains optimistic that in twelve months from now, share prices will be higher.
Key Video Moments:
00:00:15 S&P 500 up 7% +, better than the historic average
00:00:44 We are moving “ever closer” to a recession
00:01:07 CFRA Research believes 2 rate hikes to come from Fed

Subscribe to Yahoo Finance:

About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.

Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.
To learn more about Yahoo Finance Plus please visit:

Connect with Yahoo Finance:
Get the latest news:
Find Yahoo Finance on Facebook:
Follow Yahoo Finance on Twitter:
Follow Yahoo Finance on Instagram:
Follow Yahoo Finance Premium on Twitter: …(read more)

BREAKING: Recession News

LEARN MORE ABOUT: Bank Failures

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

We’re moving closer to a recession: Strategist

The global economy has long been experiencing uncertainties and instabilities, and now it seems we are moving ever closer to a recession. According to many seasoned strategists and market analysts, the signs are becoming increasingly clear that a downturn is on the horizon.

The ongoing trade war between the United States and China has been a major factor contributing to this uncertain economic environment. The tariffs imposed by both countries have caused disruptions in global supply chains and dampened business sentiment. As a result, investment and consumption have slowed down significantly, adversely impacting economic growth. With no end in sight for this trade tension, it appears that the situation will only worsen in the near future.

Furthermore, there are growing concerns regarding the state of the global manufacturing sector. Countries around the world have been witnessing a slump in manufacturing activity, with notable declines in key economies like Germany and China. These indicators raise alarms about the health of the broader economy, as the manufacturing sector is often seen as a leading indicator of economic performance.

Another critical aspect contributing to the uncertainty and potential recession is the state of global debt. Years of low-interest rates and loose monetary policies have led to a substantial increase in global debt levels, both in the public and private sectors. As interest rates rise and central banks adopt tighter monetary policies, the burden of this debt becomes more challenging to manage. Any shocks to the system, such as a significant corporate default or a banking crisis, could trigger a severe financial crisis and a subsequent recession.

Furthermore, global political tensions and geopolitical risks also create an unstable economic environment. Brexit, for example, has caused uncertainties not only in the United Kingdom but also globally, as it affects trade relations and investor sentiment. The ongoing protests in Hong Kong have disrupted economic activity and added to the already existing concerns about the slowing Chinese economy.

While it is challenging to predict precisely when a recession will hit, experts suggest that the risks are mounting, and we should be prepared for a possible downturn in the coming years. Economies around the world should focus on implementing measures to mitigate these risks and strengthen economic resilience. Governments and central banks need to employ prudent fiscal policies and innovative monetary strategies to stimulate growth and stabilize markets.

Although a recession is undesirable, it is not an uncommon phenomenon in the economic cycle. By being proactive and prepared, we can minimize the impact of a downturn and ensure a faster recovery. Businesses and individuals should carefully assess their financial positions, prioritize savings, and diversify their investments to navigate the uncertain times ahead.

In conclusion, the signs of a looming recession are becoming increasingly evident. The ongoing trade war, a slump in global manufacturing, rising debt levels, and geopolitical tensions are all contributing to this economic uncertainty. While the exact timing remains uncertain, it is crucial to take appropriate measures to mitigate risks and prepare for a potential downturn. By doing so, we can safeguard our economies and ensure a more robust recovery when the storm eventually hit.