Can either the Brexit or our upcoming presidential election have much influence on the US economy? Sam Stewart of Wasatch Funds doesn’t believe either event is a major risk, as he writes in Advisor Perspectives. Those who believe our slow economic growth is leading to a recession may be unnecessarily pessimistic. That’s according to those present at John Mauldin’s recent economic conference. Evan Simonoff reports on the discussion for Financial Advisor. The International Money Fund is another group that minimizes the effect of the Brexit. In their annual review of the US economy, the IMF described it as “negligible”.
The More Things Change, The More They Stay The Same– In spite of the many short-term market-moving events, the underlying economy has remained largely unchanged over the past five years. Each crisis has passed without the more pessimistic predictions becoming reality. And the global economy has continued to be stuck in low gear regardless of the unprecedented amount of central-bank stimulus–whether that stimulus has been quantitative easing, operation twist or negative interest rates. So from the perspective of Sam Stewart at Wasatch Funds, we’ve been witnessing the wisdom of that old adage, “The more things change, the more they stay the same.” Read more…
The Next Recession: Not Anytime Soon– Our slow economic growth has many investors wondering when the next recession will start. Yet at John Mauldin’s recent economic outlook conference, a group of leading economists—including Gary Shilling, Lacy Hunt, David Rosenberg and David Zervos—discussed the slow-growth predicament and none were predicting an outright recession anytime soon. Read more…
IMF Sees ‘Negligible’ Brexit Impact On U.S. Growth– Britain’s vote in a referendum to leave the European Union has caused uncertainty and increased risks to the U.S. economy but thus far it looks likely to have a pretty “negligible” impact on U.S. growth, the International Monetary Fund said on Tuesday. Read more…
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