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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