Recession worries are 'overdone': Strategist

US stock markets (^DJI, ^IXIC, ^GSPC) are rebounding from widespread losses after recession fears triggered a sell-off on Monday. Scott Wren, Wells Fargo Investment Institute senior global market strategist for and Seema Shah, Principal Asset Management chief global strategist join Morning Brief to discuss their market outlooks.
Shah describes the market sell-off as "a valid reaction, in some sense" though she believes the recession fears were "very much overdone." As markets recover, Shah suggests this indicates that "actually the economy concerns are not as bad as had been expected."
However, she cautions that rapid moves in either direction can be "damaging" across markets.
Wren notes that fear "gripped the market" following Friday's employment report, although he doesn't foresee a recession. While he expects economic growth may slow, he predicts improvement "in the second half of next year." Wren advises investors to "take advantage" of this market downturn to reposition portfolios.
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[Jamesjerome]

Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.

[sidinhasol]

Your explanation is concise and practical. However, the market can be manipulated in many ways. I had an early understanding of trading crypto assets but was limited by my technical analysis skills. That changed when I discovered Shea Ardolf's strategy. Day trading should be given more attention as it is less affected by the market's unpredictable nature.

[ronlokk]

Recession fears are not overdone they are overdue.

[deficator]

everyones so bipolar, yesterday it was all panic and fair about recession and now a day later everything is fine.

[Fastapproaching]

I don't know what they're talking about overdone, we've been in a in a recession ever since April of 2020 you can't shut the country down for a year and a half and not have a recession

[alb]

One thing I have learned about the stock market is that it is very very manipulated. It will not let investors know when it go up or down. It will always do the opposite what investors think it might do... If investors can figure out what the market is going to do, companies will go bankruptcy.... So I don't waste my time and energy to bother what the market is going to for me .. Long & short-term trading is generally safer, allowing investors to weather market volatility. I have managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to Aldona Sabaniene, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[goodbodha]

People need to remember what folks buy when they really think a recession is upon us. gold, bonds, and defensive stocks. This drop the only thing that was being bought was bonds. That should be a big clue.

Im not saying the market cant go down or that we wont eventually have a recession, but it is still a ways off or they would be buying those defensive stocks.

If you arent on the clock with options the best choice is usually to just sit on your hands unless you have high confidence.

[justinmodessa]

Growth slowing but no recession. Riiiight. Nothing to see here folks. Don't freak out. All good here. Just keep your money where it is. Just give us time to move all our money out first

[winnerwinnerchickendinner]

Lol! Yahoo. I'd stay away listening to all these so call experts

[justincadle]

No recession, just hold rates where they are for another 9-12 months.

[KyleBreeth]

sell and take out your cash while you can. why? because if it's done during a bloodbath market crash, you may lose a lot of money because your brokerage accounts may keep you offline. sell and buy gold and silver to buy and cash so you can buy things penny to the dollar. buy homes, lower rent, and save the new economy the right way. not the greedy way. do good! for you and your family and your neighbors. thank you beforehand ❤️ for your hard work and making the world a better place in the near future.

[GreenNutGuy]

Everything is totally fine! Nothing to see here.