Bank of America has found the perfect recession play — death

Investors worried about a potential recession can seek shelter in a morbid sector of the market: death companies. Bank of America analyst Joanna Gajuk noted that pre-need service companies, which make funeral arrangements before the person dies, only saw a “slight pullback” in business during the last recession as “75% of the pre-need funeral customers pay in one lump sum.” She added that 40% to 50% of cemetery plot and memorial space purchases are also paid in a lump sum. Recession fears have r


Investors worried about a potential recession can seek shelter in a morbid sector of the market: death companies. Bank of America analyst Joanna Gajuk noted that pre-need service companies, which make funeral arrangements before the person dies, only saw a “slight pullback” in business during the last recession as “75% of the pre-need funeral customers pay in one lump sum.” She added that 40% to 50% of cemetery plot and memorial space purchases are also paid in a lump sum. Recession fears have r
Bank of America has found the perfect recession play — death Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: fred imbert
Keywords: news, cnbc, companies, sum, trade, tensions, sumrecession, perfect, worried, recession, play, america, funeral, weaker, death, preneed, bank, lump


Bank of America has found the perfect recession play — death

Investors worried about a potential recession can seek shelter in a morbid sector of the market: death companies.

Bank of America analyst Joanna Gajuk noted that pre-need service companies, which make funeral arrangements before the person dies, only saw a “slight pullback” in business during the last recession as “75% of the pre-need funeral customers pay in one lump sum.” She added that 40% to 50% of cemetery plot and memorial space purchases are also paid in a lump sum.

Recession fears have risen lately amid weaker economic data and increasing trade tensions. Monthly jobs growth fell to just 75,000 in May — missing an estimate of 180,000 — while manufacturing activity grew last month at its slowest pace since October 2016. Meanwhile, China and the U.S. continue to strengthen their rhetoric against each other on the trade front.


Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: fred imbert
Keywords: news, cnbc, companies, sum, trade, tensions, sumrecession, perfect, worried, recession, play, america, funeral, weaker, death, preneed, bank, lump


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Corporate executives are fearing a recession in 2020, Duke survey shows

Company executives are getting more nervous about the state of the U.S. economy, with nearly half now expecting a recession within a year. Some 48.1% now see negative growth by the second quarter of 2020, according to the latest Duke University/CFO Global Business Outlook survey. The results show that 69% figure a recession will start before the end of next year, which is roughly consistent with the previous survey in April that showed 67% were anticipating a downturn by the third quarter of 202


Company executives are getting more nervous about the state of the U.S. economy, with nearly half now expecting a recession within a year. Some 48.1% now see negative growth by the second quarter of 2020, according to the latest Duke University/CFO Global Business Outlook survey. The results show that 69% figure a recession will start before the end of next year, which is roughly consistent with the previous survey in April that showed 67% were anticipating a downturn by the third quarter of 202
Corporate executives are fearing a recession in 2020, Duke survey shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: jeff cox, sam meredith
Keywords: news, cnbc, companies, survey, quarter, fearing, economy, duke, shows, universitycfo, corporate, 2020, weakening, recession, varying, vary, yearsome, reasons, executives


Corporate executives are fearing a recession in 2020, Duke survey shows

Company executives are getting more nervous about the state of the U.S. economy, with nearly half now expecting a recession within a year.

Some 48.1% now see negative growth by the second quarter of 2020, according to the latest Duke University/CFO Global Business Outlook survey. The results show that 69% figure a recession will start before the end of next year, which is roughly consistent with the previous survey in April that showed 67% were anticipating a downturn by the third quarter of 2020.

In all, the survey indicated that chief financial officers still believe the economy is weakening and the prospects for their businesses are declining. The reasons for their concerns vary, with some citing tariffs and others listing reasons varying from strong competition to freight costs and credit risks.


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: jeff cox, sam meredith
Keywords: news, cnbc, companies, survey, quarter, fearing, economy, duke, shows, universitycfo, corporate, 2020, weakening, recession, varying, vary, yearsome, reasons, executives


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The US is more likely to end the trade war than face a ‘Trump recession,’ JP Morgan’s top quant says

J.P. Morgan’s head quant said Wednesday that a U.S.-China trade deal could head off a “Trump recession” and ignite a powerful rally in value and high beta stocks. The trade war has so far offset all benefits of fiscal stimulus and could lead to a global recession if it continues. That recession would be called the “Trump recession” because it would have been mainly caused by the trade policies of President Donald Trump’s administration, he noted. “The impact of the trade war was particularly neg


J.P. Morgan’s head quant said Wednesday that a U.S.-China trade deal could head off a “Trump recession” and ignite a powerful rally in value and high beta stocks. The trade war has so far offset all benefits of fiscal stimulus and could lead to a global recession if it continues. That recession would be called the “Trump recession” because it would have been mainly caused by the trade policies of President Donald Trump’s administration, he noted. “The impact of the trade war was particularly neg
The US is more likely to end the trade war than face a ‘Trump recession,’ JP Morgan’s top quant says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: patti domm
Keywords: news, cnbc, companies, likely, rally, war, segments, quant, face, steel, trade, head, end, value, stocks, trump, morgans, jp, recession


The US is more likely to end the trade war than face a 'Trump recession,' JP Morgan's top quant says

J.P. Morgan’s head quant said Wednesday that a U.S.-China trade deal could head off a “Trump recession” and ignite a powerful rally in value and high beta stocks.

Marko Kolanovic, global head of quantitative and derivatives strategy, said in a note that he is “cautiously positive” on stocks, but his view carries risk because it depends on progress being made in the trade war.

The trade war has so far offset all benefits of fiscal stimulus and could lead to a global recession if it continues. That recession would be called the “Trump recession” because it would have been mainly caused by the trade policies of President Donald Trump’s administration, he noted.

If the trade battle were to end, Kolanovic expects there would be a swift rally in the stock market.

“This would translate into a quick ~5% rally in broad markets, and a 10-20% rally in value and high beta. As a strong market and avoiding a recession would boost re-election odds, it would only be rational to expect this outcome,” wrote the analyst.

“The impact of the trade war was particularly negative on segments that were its intended beneficiaries — such as manufacturing (autos, electrical equipment, etc.), smaller domestic companies, steel industry, etc,” he noted. For instance, U.S. Steel has fallen 75% since the start of the trade war.

But segments that might not do well include defensive and low-volatility segments, like low-beta stocks, utilities, REITs and staples. Those sectors are “very expensive and might be poised to underperform in both positive and negative trade scenarios.”


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: patti domm
Keywords: news, cnbc, companies, likely, rally, war, segments, quant, face, steel, trade, head, end, value, stocks, trump, morgans, jp, recession


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More China tariffs could push the US into a ‘Trump recession,’ CEO says

While the U.S. Commerce Department has granted a 90-day reprieve to Huawei, China has already been ramping up development of its own semiconductor industry — which could ultimately hurt the profits of U.S. companies. The blacklisting of Huawei will not only push China to become more closed off to the rest of the world, but will also hinder the United States’ ability to maintain “world leadership” in the technology market, Shapiro said. “We have these great American chip companies ready to sell t


While the U.S. Commerce Department has granted a 90-day reprieve to Huawei, China has already been ramping up development of its own semiconductor industry — which could ultimately hurt the profits of U.S. companies. The blacklisting of Huawei will not only push China to become more closed off to the rest of the world, but will also hinder the United States’ ability to maintain “world leadership” in the technology market, Shapiro said. “We have these great American chip companies ready to sell t
More China tariffs could push the US into a ‘Trump recession,’ CEO says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: shirley tay
Keywords: news, cnbc, companies, trump, world, china, companies, xi, push, ceo, united, states, shapiro, recession, president, tariffs, huawei


More China tariffs could push the US into a 'Trump recession,' CEO says

Trump on Monday renewed his tariff threats on China after Myron Brilliant, the head of international affairs at the U.S. Chamber of Commerce, told CNBC that Trump’s “weaponization of tariffs” hurts the U.S. economy and “creates uncertainty” with trading partners. Trump confirmed that an additional raft of levies will be slapped on Beijing if Chinese President Xi Jinping does not show up at the G-20 meeting in Japan — an event investors and economists will be watching for signs of a breakthrough in the trade impasse.

Huawei dispute could ‘escalate out of control’

The current tensions between the U.S. and China appeared to reach a new height when Washington placed Huawei on a U.S. entity list in May, limiting the Chinese telecom giant’s ability to purchase goods from American firms. While the U.S. Commerce Department has granted a 90-day reprieve to Huawei, China has already been ramping up development of its own semiconductor industry — which could ultimately hurt the profits of U.S. companies. According to Shapiro, restrictive measures in the tech space could escalate “out of control” and cause both consumers and U.S. chip companies to be “trampled.” The blacklisting of Huawei will not only push China to become more closed off to the rest of the world, but will also hinder the United States’ ability to maintain “world leadership” in the technology market, Shapiro said. “We have these great American chip companies ready to sell to all around the world,” he said. “And the fact is, I think the U.S. policy may be really pushing China to do everything by itself, and not only put up walls around China, but we’re putting up an economic fence around the United States.” If the U.S. wants to advance “and be innovative, maintain world leadership, we have to be out there in the world marketplace,” he added.

President Donald Trump speaks during a press conference with China’s President Xi Jinping at the Great Hall of the People in Beijing on November 9, 2017. Nicholas Asfouri | AFP | Getty Images

Tech bifurcation possible


Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: shirley tay
Keywords: news, cnbc, companies, trump, world, china, companies, xi, push, ceo, united, states, shapiro, recession, president, tariffs, huawei


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US Treasury yields tick lower amid fresh trade tensions and recession fears

U.S. government debt prices were higher Friday morning, as investors are closely monitoring developments in the bond market. At around 01:32 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 2.1731%, while the yield on the 30-year Treasury bond was also lower at around 2.6150%.


U.S. government debt prices were higher Friday morning, as investors are closely monitoring developments in the bond market. At around 01:32 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 2.1731%, while the yield on the 30-year Treasury bond was also lower at around 2.6150%.
US Treasury yields tick lower amid fresh trade tensions and recession fears Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: silvia amaro
Keywords: news, cnbc, companies, yields, fears, amid, trade, morning, treasury, recession, yield, price, moves, bond, monitoring, note, lower, fresh, prices, tick, tensions


US Treasury yields tick lower amid fresh trade tensions and recession fears

U.S. government debt prices were higher Friday morning, as investors are closely monitoring developments in the bond market.

At around 01:32 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 2.1731%, while the yield on the 30-year Treasury bond was also lower at around 2.6150%.


Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: silvia amaro
Keywords: news, cnbc, companies, yields, fears, amid, trade, morning, treasury, recession, yield, price, moves, bond, monitoring, note, lower, fresh, prices, tick, tensions


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Apparel retail earnings haven’t been this bad since the Great Recession

Apparel retailers’ earnings reports haven’t been so disappointing since the Great Recession. Apparel retailers’ earnings, as a group, are down 24% for the first quarter of 2019, according to an analysis by Retail Metrics. In the first quarter of 2018, apparel retailers’ earnings climbed a whopping 26%. Walmart and Target both, for example, had upbeat fiscal first-quarter earnings reports, specifically calling attention to strengths in their apparel businesses. The threat of tariffs has also been


Apparel retailers’ earnings reports haven’t been so disappointing since the Great Recession. Apparel retailers’ earnings, as a group, are down 24% for the first quarter of 2019, according to an analysis by Retail Metrics. In the first quarter of 2018, apparel retailers’ earnings climbed a whopping 26%. Walmart and Target both, for example, had upbeat fiscal first-quarter earnings reports, specifically calling attention to strengths in their apparel businesses. The threat of tariffs has also been
Apparel retail earnings haven’t been this bad since the Great Recession Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: lauren thomas
Keywords: news, cnbc, companies, stores, great, retail, havent, shares, recession, tariffs, reports, earnings, companies, quarter, retailers, apparel, bad


Apparel retail earnings haven't been this bad since the Great Recession

Apparel retailers’ earnings reports haven’t been so disappointing since the Great Recession.

Companies ranging from Gap Inc. to J.Jill to Canada Goose and Abercrombie & Fitch delivered disappointing earnings reports in recent days, casting blame for the results on issues such as cool and wet weather, weak traffic at malls, the wrong promotions in stores and overall product missteps. The bad news has sent those stocks, and the broader industry, tumbling. The S&P 500 Retail ETX (XRT) was down nearly 2% Friday afternoon and has fallen nearly 13% this month, putting it on pace for its worst month since November 2008, when the XRT lost 20.25%.

Apparel retailers’ earnings, as a group, are down 24% for the first quarter of 2019, according to an analysis by Retail Metrics. The group had up until now been growing earnings since the third quarter of 2017. In the first quarter of 2018, apparel retailers’ earnings climbed a whopping 26%. The last time the group’s earnings were this bad was the first quarter of 2008, when they fell 40%, Retail Metrics said.

“These are all mall-based retailers experiencing traffic issues,” Retail Metrics founder Ken Perkins said. “The consumer is holding up … sentiment numbers have been really high,” he added. The problems arise when certain companies aren’t investing in ways to drive customers to their stores and websites, while others are, he said.

Walmart and Target both, for example, had upbeat fiscal first-quarter earnings reports, specifically calling attention to strengths in their apparel businesses. They’ve actually been investing in apparel, rolling out more of their own private labels for women’s, men’s and kids’ clothes.

“It’s not that people are buying fewer clothes,” CGP president Craig Johnson said. But they’re not going the same places anymore.

The biggest victims of changing tastes are the “classic, women’s, missy retailers,” Johnson said — companies like Chico’s and Talbots. “The demand for that product is a fraction of what it used to be a generation ago. Women aren’t dressing like that.”

With fewer women flocking to its stores to buy patterned dresses, Ascena Retail Group recently announced it plans to wind down its Dressbarn business entirely, shutting more than 600 locations in the process. Earlier this week, Ascena’s stock traded as low as 93 cents.

And even as more people are going to one-stop shopping destinations such as Walmart and Target to buy clothes, they’re still shopping at off-price chains such as TJ Maxx and Ross Stores, buying more directly from brands like Zara, Nike and Lululemon, from Amazon, or from online platforms such as Stitch Fix and Rent the Runway.

The threat of tariffs has also been a recent drag on apparel retail stocks — even though some haven’t hit yet.

The White House is still considering a 25% tax on clothing and footwear imported from China, so many retail executives have been forced to address this issue on recent earnings conference calls. Many companies haven’t yet factored the 25% tariffs into their profit outlooks, which could lead to future earnings disappointments if President Donald Trump ultimately pulls that trigger.

Then, late Thursday, more uncertainty piled up when Trump raised the possibility of putting 5% duties on Mexican imports starting June 10. This round of tariffs, which could gradually increase to 25% by October, would be aimed at putting pressure on Mexico to help curb illegal immigration.

“A lot of companies are vulnerable,” CGP’s Johnson said.

Week to date, shares of Abercrombie are down almost 30%, while Canada Goose shares have fallen 29.6%, Gap’s stock is down nearly 15%, and Michael Kors parent company Capri Holdings shares are down 13.3%. All of these companies reported earnings this week.

— CNBC’s Gina Francolla and John Schoen contributed to this reporting.


Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: lauren thomas
Keywords: news, cnbc, companies, stores, great, retail, havent, shares, recession, tariffs, reports, earnings, companies, quarter, retailers, apparel, bad


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Morgan Stanley says economy is on ‘recession watch’ as bond market flashes warning

The stock market and economic outlook in the United States are “deteriorating,” according to an analysis from one of Wall Street’s top investment banks. Renewed trade tensions and a slump in economic data — ranging from falling durable goods and capital spending to a downshift in the services sector — has put U.S. profits and economic growth at risk, Morgan Stanley warned Tuesday. Specifically, the stock strategist highlighted a recent survey from financial data firm IHS Markit that showed manuf


The stock market and economic outlook in the United States are “deteriorating,” according to an analysis from one of Wall Street’s top investment banks. Renewed trade tensions and a slump in economic data — ranging from falling durable goods and capital spending to a downshift in the services sector — has put U.S. profits and economic growth at risk, Morgan Stanley warned Tuesday. Specifically, the stock strategist highlighted a recent survey from financial data firm IHS Markit that showed manuf
Morgan Stanley says economy is on ‘recession watch’ as bond market flashes warning Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-28  Authors: thomas franck
Keywords: news, cnbc, companies, recession, economy, strategist, sp, watch, wilson, flashes, investors, tensions, stanley, morgan, economic, data, trade, warning, stock, bond, market


Morgan Stanley says economy is on 'recession watch' as bond market flashes warning

The stock market and economic outlook in the United States are “deteriorating,” according to an analysis from one of Wall Street’s top investment banks.

Renewed trade tensions and a slump in economic data — ranging from falling durable goods and capital spending to a downshift in the services sector — has put U.S. profits and economic growth at risk, Morgan Stanley warned Tuesday.

“Recent data points suggest US earnings and economic risk is greater than most investors may think,” wrote Michael Wilson, the firm’s chief U.S. equity strategist.

Specifically, the stock strategist highlighted a recent survey from financial data firm IHS Markit that showed manufacturing activity fell to a nine-year low in May. That report also revealed a “notable slowdown” in the U.S. services sector, a key area for an American economy characterized by huge job gains in health care and business services.

Source: Morgan Stanley Cross Asset Research

Many recent reports reflect April data, “which means it weakened before the re-escalation of trade tensions,” Wilson continued. “In addition, numerous leading companies may be starting to throw in the towel on the second half rebound–something we have been expecting but we believe many investors are not.”

Wilson was one of the most bearish stock strategists last year, defending his initial S&P 500 call of 2,750 for year-end 2018 without adjusting it throughout the year. By the end of the year, his call was the most accurate of any strategist tracked by CNBC.

He’s stood by his gloomy case for 2019, often warning that investors could be caught in a “rolling bear market ” for the next several years. The market has thus far outpaced Wilson’s models for 2019, with the S&P 500 up 11.7% and the Dow Jones Industrial Average up 8.6% year to date.

The stock market sold off Tuesday, adding to steep losses for the month of May. The Dow fell 237 points and the S&P dropped 0.8% during the session; they are down 4.6% and 4.8%, respectively, this month.


Company: cnbc, Activity: cnbc, Date: 2019-05-28  Authors: thomas franck
Keywords: news, cnbc, companies, recession, economy, strategist, sp, watch, wilson, flashes, investors, tensions, stanley, morgan, economic, data, trade, warning, stock, bond, market


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Major investors Lee Cooperman and Mario Gabelli aren’t that worried about a trade war

Two well-known billionaire investors are not all that worried about an ongoing trade war. Hedge fund investor Leon Cooperman and value investor Mario Gabelli highlighted reasonable valuations, a “friendly” Federal Reserve and low risk of recession as reasons for calm amidst international trade drama. “All I know is I don’t think we’re heading for a recession,” Cooperman, founder, chairman and CEO of Omega Advisors, said on CNBC’s Halftime Report Thursday. He also sees stocks’ valuations as “reas


Two well-known billionaire investors are not all that worried about an ongoing trade war. Hedge fund investor Leon Cooperman and value investor Mario Gabelli highlighted reasonable valuations, a “friendly” Federal Reserve and low risk of recession as reasons for calm amidst international trade drama. “All I know is I don’t think we’re heading for a recession,” Cooperman, founder, chairman and CEO of Omega Advisors, said on CNBC’s Halftime Report Thursday. He also sees stocks’ valuations as “reas
Major investors Lee Cooperman and Mario Gabelli aren’t that worried about a trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: kate rooney, scott mlyn
Keywords: news, cnbc, companies, trade, trump, stocks, investors, investor, lee, valuations, major, war, reserve, cooperman, recession, china, arent, worried, mario, reasonable, gabelli


Major investors Lee Cooperman and Mario Gabelli aren't that worried about a trade war

Two well-known billionaire investors are not all that worried about an ongoing trade war.

Hedge fund investor Leon Cooperman and value investor Mario Gabelli highlighted reasonable valuations, a “friendly” Federal Reserve and low risk of recession as reasons for calm amidst international trade drama.

“All I know is I don’t think we’re heading for a recession,” Cooperman, founder, chairman and CEO of Omega Advisors, said on CNBC’s Halftime Report Thursday. “Between valuations and other conditions that are normally associated with an important decline, we don’t have them.”

Cooperman said the Federal Reserve is now “the furthest thing from hostile” after its more dovish stance on raising interest rates this year. He also sees stocks’ valuations as “reasonable.” As a result, Cooperman said current market weakness is probably a 5% correction.

“The conditions for a big decline aren’t present,” Cooperman said.

Stocks continued the deep sell-off this week as traders grapple with how to price in trade. At a rally Wednesday evening, President Donald Trump said China “broke the deal,” fueling worries the U.S. and China will be unable to reach an agreement before new 25% tariffs go into effect at midnight. Stocks walked back some of the losses after Trump said on Thursday he has an “excellent alternative” to a China trade deal.

On trade, Gabelli said it’s “time that somebody arm-wrestles the issue.”


Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: kate rooney, scott mlyn
Keywords: news, cnbc, companies, trade, trump, stocks, investors, investor, lee, valuations, major, war, reserve, cooperman, recession, china, arent, worried, mario, reasonable, gabelli


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Central banks have almost eliminated recessions, venture capitalist Palihapitiya says

Central banks have created an environment where both major downturns as well as expansions are almost impossible, venture capitalist Chamath Palihapitiya said Tuesday. A well-known investor across a multitude of areas, including as a very early Facebook executive and a big proponent of cryptocurrencies, Palihapitiya told CNBC that entities like the Federal Reserve have used quantitative easing to stage-manage an essentially stagnant economy. A lack of downturns is not necessarily a good thing, P


Central banks have created an environment where both major downturns as well as expansions are almost impossible, venture capitalist Chamath Palihapitiya said Tuesday. A well-known investor across a multitude of areas, including as a very early Facebook executive and a big proponent of cryptocurrencies, Palihapitiya told CNBC that entities like the Federal Reserve have used quantitative easing to stage-manage an essentially stagnant economy. A lack of downturns is not necessarily a good thing, P
Central banks have almost eliminated recessions, venture capitalist Palihapitiya says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: jeff cox
Keywords: news, cnbc, companies, recessions, banks, palihapitiya, venture, save, world, eliminated, recession, youre, means, stocks, central, told, capitalist, better, theres


Central banks have almost eliminated recessions, venture capitalist Palihapitiya says

Central banks have created an environment where both major downturns as well as expansions are almost impossible, venture capitalist Chamath Palihapitiya said Tuesday.

A well-known investor across a multitude of areas, including as a very early Facebook executive and a big proponent of cryptocurrencies, Palihapitiya told CNBC that entities like the Federal Reserve have used quantitative easing to stage-manage an essentially stagnant economy.

“I don’t see a world in which we have any form of meaningful contraction nor any form of meaningful expansion,” he told CNBC’s Scott Wapner during a “Fast Money Halftime Report” segment. “We have completely taken away the toolkit of how normal economies should work when we started with QE. I mean, the odds that there’s a recession anymore in any Western country of the world is almost next to impossible now, save a complete financial externality that we can’t forecast.”

A lack of downturns is not necessarily a good thing, Palihapitiya added, and he criticized central banks for refusing to allow normal economic cycles to play out.

“Central bankers have lost all intestinal fortitude to actually put a country through a recession, because it’s actually regenerative and useful,” he said. “Even if they had the wherewithal to do it, the political infrastructure will just completely absorb that intent. So we are probably not, save of something crazy, going to see massive, massive negative growth except in countries that are so fundamentally crippled that they tip over.”

For investors, that means a limited menu of choices.

“So the reality is we’re going to grow low single digits every year, which means there’s no growth anywhere else, which means you’re better off buying equities and you’re better off buying equities that are substantively ones that are sort of the deflationary stocks, the cheaper, faster better stocks, the tech stocks,” he said.

Palihapitiya is CEO of Social Capital and he also is a minority stakeholder and board member of the NBA’s Golden State Warriors.


Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: jeff cox
Keywords: news, cnbc, companies, recessions, banks, palihapitiya, venture, save, world, eliminated, recession, youre, means, stocks, central, told, capitalist, better, theres


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Friday’s report of first quarter growth should show economy is strong and no recession in sight

Over the past week, as the late quarter data was released, economists boosted their forecasts. Stanley said he expects that he expects growth of about 3.3% for the second quarter. He expects to see a comeback by the consumer, after sluggish spending growth in the first quarter. He also said there are signs business spending will also pick up in the second quarter. Economists said that first quarter growth has traditionally been weaker because of seasonal factors.


Over the past week, as the late quarter data was released, economists boosted their forecasts. Stanley said he expects that he expects growth of about 3.3% for the second quarter. He expects to see a comeback by the consumer, after sluggish spending growth in the first quarter. He also said there are signs business spending will also pick up in the second quarter. Economists said that first quarter growth has traditionally been weaker because of seasonal factors.
Friday’s report of first quarter growth should show economy is strong and no recession in sight Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: patti domm, getty images
Keywords: news, cnbc, companies, spending, economy, data, quarter, fridays, growth, second, forecast, report, gdp, strong, sight, expects, recession, know, fears


Friday's report of first quarter growth should show economy is strong and no recession in sight

Traders are paying closer than normal attention to the data, which is viewed as backward looking, because of the recession fears and what implication it might have for growth heading into the second quarter. Dow Jones consensus forecast is for 2.5% growth, while CNBC/Moody’s Analytics GDP Survey shows economists have a median forecast of 2.4%.

“Almost half the quarter you had the threat of the March 1 tariff hike hanging over everyone. That went away, but it should not be a surprise the quarter started out on a really weak note. The fears were exasperated by the fact we didn’t have data for awhile and we were kind of in a vacuum,” Stanley said.

Over the past week, as the late quarter data was released, economists boosted their forecasts. The GDP report is expected at 8:30 a.m. ET Friday.

“We already know the first quarter is stronger than people expected. We might get some headline affect, but we’re not going to learn a lot we already don’t know,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.

Stanley said he expects that he expects growth of about 3.3% for the second quarter. He expects to see a comeback by the consumer, after sluggish spending growth in the first quarter. “Given the blowout retail sales we saw in March, the stage was set for a nice bounce back in Q2,” he said. He also said there are signs business spending will also pick up in the second quarter.

Economists said that first quarter growth has traditionally been weaker because of seasonal factors.


Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: patti domm, getty images
Keywords: news, cnbc, companies, spending, economy, data, quarter, fridays, growth, second, forecast, report, gdp, strong, sight, expects, recession, know, fears


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