The chopped action points to the deep uncertainty in the financial markets. Is this just a soft update, like the many others that the decade-long economic expansion has survived? Or is this something more serious?
Jeffrey Sherman, Deputy Chief Investment in DoubleLine Capital, encourages investors to be cautious before taking any rash in either direction.
"It's too early to fold down" Sherman told CNN Business. But it's also not time to add large amounts of risk, he said.
Sherman chief, famous investor Jeff Gundlach, said during a webcast on Thursday that he sees a 40% to 45% chance of a US recession within six months. DoubleLine Capital, which manages $ 1[ads1]30 billion in assets, has moved the credit line while the company is considering the prospects.
The problem is that there are many mixed signals.
In the hausian camp, retailing in the US grew at a good pace in May. Shoppers splurged on electronics, appliances and of course, online. Small business optimism recovered last month to the best level since the fall.
And the Trump administration relied on its frightening threat of imposing tariffs on all goods from Mexico.
But cautionary signals have flooded. Broadcom ( AVGO ) a leader in the bellwether chip industry, dramatically beat their revenue guidance due to trade tensions between the United States and China and a "broad-based decline" in demand. China's industrial production slows down in May to the weakest pace for 17 years.
And most alarmingly, the bond market has created strange.
Read Next
10 mins ago
Cryptoanalyst who caught Bitcoin collapse this year issues warning, says Fresh BTC Crash imminent
1 hour ago
Crypto hedge fund Three Arrows is seeking bankruptcy
2 hours ago
Holiday vacation pushes US airport traffic to pandemic high
3 hours ago
Holiday chaos in bad weather – ABC News
4 hours ago
Tesla (TSLA) announces just over 250,000 deliveries – first quarter down in a long time
5 hours ago
Boston travelers are responding to Delta’s $ 10,000 offer for overbooked passengers
6 hours ago
Boston travelers are responding to Delta’s $ 10,000 offer for overbooked passengers
7 hours ago
Lucci’s Market in Wilmington sold after 66 years of operation
8 hours ago
Tesla’s record of quarterly deliveries ends thanks to China’s COVID closures
9 hours ago
Thousands of flights are delayed or canceled when July 4 travel begins
Back to top button
