The Exchange: A Triple Threat of Economic Experts Discuss Markets, Trade War, and Recession
Last week on CNBC’s “The Exchange,” three renowned economic experts joined forces to discuss the current state of markets, the ongoing trade war, and the potential for a recession. UBS’s David Lefkowitz, Moody’s Mark Zandi, and Bleakley Financial’s Peter Boockvar shared their insights and perspectives.
Markets
David Lefkowitz weighed in on the markets, stating, “We’ve had a pretty good run since the beginning of the year. I think the markets are a little extended, but I don’t think we’re in a bubble.” He went on to explain that while valuations are high, they’re not at bubble levels, and earnings have been strong. “The economy is still growing, and I think the markets can continue to grind higher,” Lefkowitz concluded.
Trade War
Mark Zandi discussed the ongoing trade war and its potential impact on the economy. “The trade war is causing uncertainty for businesses,” he said. “They’re not investing because they don’t know what the tariffs are going to be or when they’re going to be imposed.” Zandi also noted that the trade war is causing inflation, which is reducing consumers’ purchasing power. “If the trade war continues, we could see a slowdown in the economy,” he warned.
Recession
Peter Boockvar added his thoughts on the potential for a recession. “I don’t think we’re in a recession yet, but we’re getting closer,” he stated. “The yield curve is inverting, which is a classic recession indicator. But it’s not a perfect indicator, and it can be wrong.” Boockvar went on to explain that other indicators, such as employment numbers and consumer spending, are still strong.
Personal Impact
So, what does all this mean for the average person? If the trade war continues and the economy slows down, you might see job losses or reduced hours. Inflation could also make it more expensive to buy the things you need. It’s important to stay informed and prepare for potential changes.
Global Impact
On a larger scale, a global economic slowdown could lead to instability in financial markets and even political unrest. Trade tensions between the US and China could escalate, leading to further tariffs and trade restrictions. It’s a complex issue with far-reaching consequences.
Conclusion
In conclusion, the economic experts on CNBC’s “The Exchange” provided valuable insights into the current state of markets, the trade war, and the potential for a recession. While there are reasons for optimism, there are also reasons for concern. It’s important for individuals and businesses to stay informed and prepare for potential changes. As Peter Boockvar wisely noted, “The economy is like a roller coaster. Sometimes it’s going up, sometimes it’s going down. The key is to hold on tight and enjoy the ride.”
- Markets have had a good run since the beginning of the year, but valuations are high and earnings have been strong.
- The trade war is causing uncertainty for businesses and reducing consumers’ purchasing power.
- The potential for a recession is a concern, with indicators such as the inverting yield curve and employment numbers sending mixed signals.
- The average person could see job losses or reduced hours, and inflation could make it more expensive to buy necessities.
- A global economic slowdown could lead to instability in financial markets and even political unrest.
- It’s important for individuals and businesses to stay informed and prepare for potential changes.
