Ignore Economists’ Recession Fears and Focus on the Facts

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Last week, Wall Street’s celebrities and a whole host of financial journalists flocked to the World Economic Forum’s annual meeting, perhaps better known as just “Davos.” There, big names in economics once again stoked recession fears, pointing to inflation and every other metric under the sun.

Source: InvestorPlace

Media organizations ran with it, promising a recession was coming before the 2020 presidential election. But in this episode of “Moneyline” with Matt McCall, he’s here to make sense of the chaos.

What’s his short answer? A recession isn’t right around the corner.

Due to technical difficulties, loyal followers can’t exactly see McCall’s veins popping in this weekly installment. That doesn’t mean he isn’t frustrated, however. At Davos 2020, the International Monetary Fund warned of “sluggish” growth. What does this mean? Well, the IMF is calling for the U.S. economy to grow 2% this year, down from 2.3% growth last year. And China’s economy is set to grow 6%, also down just slightly from last year.

These warnings didn’t just come from the IMF. Famous hedge fund manager Paul Tudor Jones also jumped in the ring. He cited the Federal Reserve’s “insane monetary policy” and the growing coronavirus threat. But that doesn’t mean McCall is giving his fears of a pullback any more credence. Guys like Jones aren’t in the market to look out for individual investors. And famous economists rarely get things right.

McCall’s Podcast

It may seem like McCall has a grudge against economists, and he just might. Comparing their predictions to those of meteorologists, he points to what happened just a few months again, when recession fears were on a rise. The yield curve inverted, and all of a sudden the floodgates burst. Every economist — or at least 70% of them — said a recession was coming. The inversion was a “key recession signal” and stocks were doomed. Heck, some famous economists said we were already in a recession way back in June.

If you remember, McCall said a recession was far away. He has been calling for another decade of prosperity, dubbed the Roaring 2020s. He’s even referenced the hashtag #10MoreYears. And compared to those prediction makers, he was right. Since the yield curve’s inversion the S&P 500 is up 13% and the market continues to reach all-time highs. He still believes there’s a lot of upside potential ahead.

At the end of the day, remember that economists aren’t in the business of making money for investors. They are always making predictions, but they aren’t always right. The news from Davos is just more noise. Keep your head up, do your own research and get ready for another decade of growth.

For more on recession fears, tech troubles and the future of deep learning, tune in to “Moneyline” with Matt McCall.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. 


Article printed from InvestorPlace Media, https://investorplace.com/2020/01/ignore-economists-recession-fears-and-focus-on-the-facts/.

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