‘What if this is the thing that brings it down?’: A Wall Street investment chief explains how the stock market’s coronavirus-induced sell-off could push the US into a recession
- Doug Ramsey, the chief investment officer at Leuthold Group, thinks the coronavirus could be the variable that finally pushes the US into a recession.
- He backs up his thesis by citing economic narratives, an increasing number of recessionary precursors stacking up, and valuations on the higher side of the historical average.
- Ramsey thinks that if the sentiment-driven economic narrative starts to wane as coronavirus fears flare, the US could be forced into a recession.
- “That’s why I’m so concerned about a downturn here,” he said.
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“What if this is the thing that brings it down?”
The thing that Ramsey is referring to is none other than the coronavirus — and he thinks it could be the straw that breaks the market’s proverbial back.
“There’s really never been anything quite like this in my memory or in anyone’s market memory,” he said. “It’ll just be interesting how the narrative unfolds.”
The importance of the narrative that Ramsey describes above cannot be stressed enough. It’s …continued .
[Source: Business Insider]