There’s a chilling trend in the market, and it could wreak havoc on your portfolio, a top market watcher said.
“We are seven years into a full-fledged, all out, central bankers doing everything they can to stimulate demand,” Bank of America-Merrill Lynch’s head of U.S. equity and quantitative strategy Savita Subramanian recently warned on CNBC’s ” Fast Money .”
“We looked at all of these indicators that have been pretty good at forecasting recessions and we extrapolated that if they follow the current trends they’re on, we’re going to hit a recession sometime in the second half of next year.”
The most unsettling thing is that this recession risk isn’t discounted into the market at these levels, according to Subramanian.
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