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
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US stocks are back in a bull market 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.