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CONTENT WITH International
On this episode of Stock Market Report, Jeff Kleintop speaks to the ominous signs that have investors wondering if the Global recession has begun. if the Global recession has begun.
Global growth is likely to slow in 2019 as the economic cycle nears a peak. International stocks may continue to see heightened volatility and could enter a bear market if key indicators continue on their current path.
Global growth may slow in 2019 as the economic cycle nears a peak, with increasing drag from worsening financial conditions combining with full employment and rising prices.
After a more volatile 2018, there are continued concerns investors are set to face in 2019—are they building to a major problem, or merely minor bumps in the road?
Ominous signs for the world economy may be causing stocks to price in an imminent global recession. However, these appear to be isolated, short-term events that already show signs of stabilization. Growth may rebound in the near-term and offer some relief for stocks.
Economic growth for many of the world’s biggest economies is expected to slow in 2019, yet China appears to be the only one planning on implementing economic stimulus. While a bounce from China’s stimulus is possible, we believe global growth is likely to slow as the economic cycle nears a peak, leaving investors to consider reducing volatility by trimming the more volatile asset classes such as emerging market stocks.
The U.S. stock market’s relentless run-up has left many investors exposed. Now may be the time to allocate elsewhere.
Recent stock market behavior and our belief in heightened risk of a peak in the global economic cycle in the next 6-18 months, makes it a good time to consider what has happened to stocks in a typical recession and bear market.
Recent market volatility has made some investors wonder if the economic cycle is ending and stocks are at the start of a prolonged decline. One indicator we are watching for signs of the potential for a recession and a deeper and prolonged decline in stocks is the gap between the unemployment rate and the inflation rate. This indicator suggests that the risks are rising.
Globally diversifying your portfolio can help cushion against wild market swings and can likely give you more consistent performance over time.
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