Stock Market Crash: 3 Indicators Show Recession Still Coming

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A former BlackRock stock chief shares 3 indicators that tell him it's too early to abandon his recession call despite the economy's strength — and warns the stock market's rally is doomed for a reversal

— taking back their recession calls earlier this month. It's also visible in the S&P 500's 16.8% rally so far year-to-date., the CIO at Crossmark Global Investments and a former chief US equity strategist at BlackRock, thinks investors aren't being patient enough. He told Insider on Thursday that he's sticking with his call for a downturn in the months ahead.

"No question the word recession has left a lot of people's vocabulary," he continued, adding,"I'm stubborn and I'm still using the word recession in my vocabulary." Instead, investors should be paying attention to indicators like the Treasury yield curve, The Conference Board's Leading Economic Index, and money growth.

"17 months ago is when the Fed started raising rates. And the start of a recession typically comes a bunch of of months after the yield curve inverts. The yield curve didn't invert until less than a year ago. So all of it tells me, not so fast with just abandoning a recession," he said.

 

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