United States

Recession risk and strategic asset allocation

WEEKLY MARKET COMMENTARY  | 

Download report

The continuing U.S. economic expansion is now the longest in U.S. history and estimates are for growth to continue for the near future. Yet headlines and data indicating a slowdown in global economic activity have understandably caused investor worry. Recent economic data shows a mixed picture. By all measures, the consumer (which represents more than two-thirds of the economy) is in good shape, supported by job growth, low unemployment and wage increases. At the same time, trade tensions have created a tenuous climate for many businesses globally. This is most evident in increasingly weak measures of business investment and manufacturing activity, notably in Europe. While not calling for a downturn near term, RSM’s Chief Economist, Joe Brusuelas, believes that economic growth is clearly running out of steam and that “slipping into 1% growth sets the stage for one of those economic or geopolitical events to push the global economy into a full-blown recession.”

Despite increased prospects for economic slowdown, we continue to advocate that clients adhere to their risk-appropriate long-term strategic asset allocation rather than attempt to time market exit and entry based on economic forecasts.

 

AUTHORS


How can we help you?

To discuss how our team can help your business, contact us by phone 800.274.3978 or