Economics

Goldman’s Low US Recession Odds Get It Wrong, Bond Investors Say

  • Fidelity Int’l, Allianz GI warn of economic storm, new crises
  • Outlook for more tightening spurs fears something will break
WATCH: The risks for bond investors from this week’s meeting go well beyond whether officials decide to raise rates again. Ruth Carson reports.Source: Bloomberg
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US stocks are back in a bull marketBloomberg Terminal and the American economy has consistently outperformed expectations, leading some firms to suggest the threat of recession has eased, if not altogether passed.

Such thinking, though, risks a grave error for investors, according to some of the world’s biggest bond managers from Fidelity International to Allianz Global Investors. They’re sticking to their forecasts for a downturn and advise hedging any bets on risk assets.