On Monday, the CEO of Morgan Stanley told investors that the U.S. faces a 50% chance of recession by June 2022. The news came as investors feared that a recession could hit the stock market in the coming years. Still, the CEO said that despite the fears, U.S. companies and consumers remain in good financial shape. That is, until cyber attacks or another large economic downturn threatens the global economy.
The chief executive of Morgan Stanley, James Gorman, has echoed the recent chorus of warnings about an impending US recession. While expressing concern about a worse-than-expected inflation reading, Gorman urged Americans not to panic. He said the probability of a recession is 50-50, a slight uptick from previous forecasts. He also noted that the Fed has not fully priced in the impact of its sharp tightening effort.
The high consumer spending over the last few months has been one of the key factors helping the economy stay afloat, despite a potential US recession. According to Goldman Sachs, consumers’ high spending levels are enough to keep the economy on track even in a mild recession. However, despite a 50 percent risk, Gorman is confident that the Fed will have the situation under control. But the road ahead is going to be bumpy for many consumers.
The chief executive of Morgan Stanley sees a 50 percent chance of a US recession on June 13 2022. That’s a bit more than half the usual number. But that doesn’t mean that it’s too late to sell your stocks. In fact, the CEO believes that the US economy can grow much larger than its current size. This is good news, but there are risks to holding on to your money, so you should make sure you’re properly diversified.