JPMorgan's investment-strategy chairman lays out 3 reasons why the US will avoid recession through 2020

simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.

But not all are convinced that a day of reckoning in the US economy is upon us — and one prominent investment strategist thinks the market is overlooking underlying strength. The US yield curve"is not as reliable a signal at a time when 70%-100% of European and Japanese government bonds trade at negative yields, driving up demand for long duration US assets," he said in a recent client note.

Against that backdrop, Cembalest provides three reasons he thinks the US will side-step a near-term economic catastrophe.With unemployment hovering around a 50-year low, and wage growth pushing above 3%, the US consumer remains a strong, foundational component of economic growth. Remember, consumer spending accounts for about 70% of GDP. Without a material slowdown in spending, a recession is unlikely to rear its ugly head.

The graph below shows how multinational corporations are side-stepping the impact of US tariffs in China.As a plethora of global central banks continue to demonstrate their willingness to cut interest rates, Cembalest sees a rebound in manufacturing coming down the pike.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The US lobster industry latest to get caught in the US-China trade warCNBC's Contessa Brewer reports from Kennebunkport, Maine on how the U.S. lobster is the next item to get caught up in the U.S.-China trade war. Price of Lobster should be going down for Americans. Tarriffs are working. Muh Robster! Be Patriotic order Lobster. Make sure you take your aged garlic first to reduce cholesterol.
Source: CNBC - 🏆 12. / 72 Read more »