Uncertain Timing Persists for Recession Risks, says Cameron Dawson of NewEdge Wealth

by | Jul 9, 2023 | Recession News | 16 comments




Cameron Dawson, chief investment officer for NewEdge Wealth, joins ‘Squawk Box’ to preview this week’s key inflation readings, the potential market impact, and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

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BREAKING: Recession News

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The global economy has been on a rollercoaster ride over the past year, with the COVID-19 pandemic wreaking havoc on markets and pushing economies into deep recessions. While there have been signs of recovery in recent months, experts warn that the risks for another recession are still present, even if the timing remains uncertain.

Cameron Dawson, Chief Economist at NewEdge Wealth, highlights that there are several factors that could potentially trigger another economic downturn. One major concern is the ongoing impact of the pandemic, particularly the emergence of new variants and the slow pace of vaccination in some parts of the world. Dawson notes that as long as the virus continues to spread and disrupt economic activity, the potential for a recession remains.

Another key risk factor is the withdrawal of economic stimulus measures implemented by governments and central banks. Many countries have injected massive amounts of monetary and fiscal support to keep their economies afloat during the crisis. However, as economies start to recover, policymakers may be tempted to scale back these measures, which could have unintended consequences. Dawson points out that a premature withdrawal of stimulus could lead to a decrease in consumer spending and business investment, creating a ripple effect on economic growth.

See also  According to Jonathan Golub of Credit Suisse, the yield curve signals no recession until the year 2025.

Additionally, Dawson explains that geopolitical tensions and trade disputes further contribute to the fragility of the global economy. As countries grapple with rising nationalism and protectionism, the potential for trade wars or disruptions in global supply chains looms large. These factors can disrupt trade flows, decrease business confidence, and hinder economic growth.

While the risks for another recession are evident, the timing of such an event remains uncertain. Dawson emphasizes that accurately predicting a recession is challenging, and there are many variables at play. External shocks, such as a financial crisis or a sudden surge in inflation, could accelerate the onset of a recession. On the other hand, concerted efforts by policymakers to manage risks and sustain economic growth can delay a recession.

Dawson advises investors and individuals to remain cautious and take a long-term perspective when it comes to their financial decisions. Diversifying portfolios, managing debt levels, and maintaining a cash buffer are strategies that can help mitigate the impact of a potential downturn. Staying informed about global economic trends and seeking professional guidance can also provide individuals with insight and guidance on navigating uncertain times.

In conclusion, the risks for a recession are still present in the global economy, but the timing remains uncertain. Factors such as the ongoing impact of the pandemic, withdrawal of stimulus measures, and geopolitical tensions contribute to the fragility of the economic recovery. Taking precautions and staying informed about global economic trends can help individuals and investors weather the storm and protect their financial well-being.

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16 Comments

  1.  Benoit Massicotte

    In light of the impending recession and the fact that inflation is still far higher than the Fed's 2% target, several of the most prominent market analysts have been expressing their views on how terrible they believe the next downturn will be and how far stocks may have to fall. I need advice on what investments to make because I'm attempting to create a portfolio for my children that will at least be $850k in value.

  2. thisguy73

    Buy makeup stocks

  3. Olivia

    Increasing interest rates are going to continue to increase bank failures because it puts their commercial paper and treasuries underwater. They need to freeze interest rates to prevent a deep recession in the economy. At the same time the White house needs to help industry to increase gas and oil output to reduce fuel prices. The war on oil only serves to increase energy prices which trickles out to the rest of the economy as inflation. Lowering interest rates, tightening the money supply, reducing government spending and increasing the cheap supply of fuel will result in reduced inflation and a booming economy. Presto, no inflation and no recession. Of course there are a lot of other agendas out there that will never let all of that happen, so hello recession and sticky inflation.

  4. Harry Chu

    The NBER will likely not declare a recession uder this regime entering an election year. Stocks will be resilient, as they have.

  5. j g

    joe adds no value lol

  6. Marcedric Kirby

    MARCEDRIC.KIRBY INC.
    Panicking so much money class is in we do this for meats and treats if we can learn nothing we can eat MARCEDRIC.KIRBY INC. had a backup plan to open a off line safe deposit box account with a bank credit line of $250,000 standard practice

  7. Honest Business

    I don’t trust today’s republicans to do the right thing for Wall Street. Sad, but true. Not sure how or why it has changed so much.

  8. Handsome_Hero

    Dayum she got the filters on max strength today

  9. Joey Sams

    I was at a retirement seminar and the speaker spoke on how he quit his job after he made well over $950,000 PROFIT within 3months he invested $120,000. I just began investing and i will really appreciate any tips or helpful guide.

  10. Corey

    Its called karma. Bootstraps baby.

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