Bank of America: "Imminent Recession"

Posted by Patrick Ceresna on Oct 21, 2016 9:30:41 AM

Bank of America's Savita Subramanian issued an overnight note titled "Is it about time for a recession?".  In the note, is suggests that they found evidence for an imminent recession.  Suggesting that if data were to continue to weaken in line with the recent pace, history would point to a recession in the second half of 2017.  Further explination suggests that not every bear market coincides with a recession, but the most painful ones do.  But my favorite part is that they caution Bank of America's long-term oriented investors from going to far in reducing their equity exposure suggesting that unless you can pinpoint the peak of the market within a 12-month timeframe, you are typically better off staying invested.

Ceresna Comment: Let me summarize.  There is risk and a lot can go wrong and it is imminent.  But don't worry, just buy and hold for the long-term.   Thanks for the advice Bank of America, but I think I will let you and your clients hold the bag on the way down.

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Topics: Recession

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