6 reasons why U.S. economy may not achieve soft landing: BCA
BCA Research identified six key reasons why the U.S. economy may struggle to achieve a soft landing, as outlined in their latest note"Cold Hard Facts: Positioning For An Economic Slowdown."1. Consumers Are Tapped Out: The firm notes that consumer spending is weakening, which is why BCA recommends underweighting sectors like Consumer Services and Consumer Staples. This indicates that consumers' financial resources are depleting, reducing their ability to drive economic growth.
3. Disinflationary Trends Return: With disinflationary trends becoming more apparent, BCA suggests underweighting inflation-sensitive sectors such as Energy and Materials. This shift indicates that the inflationary pressures are easing, reducing the need for sectors that benefit from rising prices. 5. Downside Protection: BCA observes that the recent market rally has been narrow and multiple technical indicators suggest a potential correction. To safeguard against downside risks, they recommend adding defensive sectors such as Utilities and Pharma to portfolios.
BCA concludes that despite better-behaved inflation prints, the broad-based deterioration in economic data and slowdown in consumer spending signal tough times ahead. They suggest taking profits from GAI-related industries and preparing portfolios for defensive positioning ahead of expected rate cuts.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BCA’s golden rule for Australian inflation-linked bondsBCA’s golden rule for Australian inflation-linked bonds
Read more »
S&P 500 to tumble 30% as recession hits later this year, says BCA ResearchThe recession will come in late 2024 or early 2025, BCA Research predicts.
Read more »
6 reasons why U.S. economy may not achieve soft landing: BCA6 reasons why U.S. economy may not achieve soft landing: BCA
Read more »
Uncertainty and volatility to continue rising into election, BCA warnsUncertainty and volatility to continue rising into election, BCA warns
Read more »
The Fed can't ignore the labor market any longer: BCAThe Fed can't ignore the labor market any longer: BCA
Read more »
Stocks could fall 30% as US heads for a deep recession, analyst warnsA new analyst note from BCA Research suggests the S&P 500 could slide as much as 30% within the next year as the U.S. economy enters a deep recession.
Read more »