Recession or not? 60% of Americans think ‘yes’ in uncanny 2007 deja vu

September 16, 2019 | Alternative Investments

An ABC/Washington Post poll finds six out of ten Americans expect a 2020 recession.

A 2020 recession has many Americans worried about the economy. A new survey showed nearly the same result as the 69% opinion observed in November 2007, some months before the global financial crisis.

Americans are despondent from the U.S.-China trade wars. Pessimism is high despite an economic climate of low unemployment. Roughly 60% of people also felt that they would have to pay higher prices because of the trade wars.

Analysts and consultancies also afflicted by doom and gloom

Analysts at Morgan Stanley predicted a recession in the US economy due to the cost impact of Trump’s tariff hikes. These tariffs would compound the cost issues companies are already dealing with, they said.

The Bank of America Merrill Lynch consumer confidence indicator dipped 3.8 points to 50.1 in September, marking a new low. The bank’s economists attributed this decline to the dampening impact of trade wars.

According to Jeffrey Gundlach, who manages $140 billion for DoubleLine Capital, the recession risk in 2020 has grown to 75%. He said investors should be wary of the phenomenon of the yield curve inversion occurring and then going away.

Trump and the parties

Meanwhile, Donald Trump’s ratings fell somewhat according to the poll. His job approval statistics declined from a 44% high in July to 33%.

The poll also found that 90% of Republicans were optimistic about economic conditions, whereas this was only 33% for Democrats.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

Latest Alternative Investment News

Hedge Fund Performance Update: December 2019
January 21, 2020     Hedge Funds, Investments, News

Hedge fund performance was strong at the end of 2019. The Preqin All-Strategies Hedge Fund benchmark returned +2.00% in December, bringing the 2019 return to +11.58%. Funds of hedge funds gained…

Hedge Funds are Selling Oil Again
January 21, 2020     Hedge Funds, Investments, News

NYMEX and ICE WTI data show that hedge funders were net sellers of crude oil for the week ending January 14. Funds sold roughly 99 million barrels in the six…

Digital Assets: UAE a Flag-bearer for Blockchain Technology Deployment
January 20, 2020     Digital Assets, News

The UAE is a Flag-bearer for Blockchain Technology Deployment. A joint white paper has been issued by the World Economic Forum and the United Arab Emirates’ Centre For The Fourth…

Digital Assets: Bitwise/ETF Trends 2020 Survey – 65% Advisors Want to Buy Bitcoin in an ETF
January 20, 2020     Digital Assets, News

The Bitwise / ETF Trends 2020 Benchmark Survey of Financial Advisor Attitudes Toward Cryptoassets gives useful insight into what advisors are thinking about Bitcoin and cryptos going into 2020. ETFs…