Jul 11, 2022
Recessionary talks have ramped up in the last week, Phil begins by challenging recessionary headlines by diving into the economic data. There is no doubt that we are in the midst of a slower growth regime, however important data, like the manufacturing and services sectors numbers show that both areas of the economy remain in expansionary territory. Similarly, while markets have moved downwards, earnings estimates have moved higher. Another sign that the pillars of the economy and stock market are still holding up. Phil then dives into the possibility of having a bear market (which we are currently in) without a recession and how history has showed us that the year following a bear market typically rewards investors who continued to hold with strong equity gains. At times economic growth diverges from stock market growth and that is, to an extent, what we are seeing now.