Since 2018 there have been rumblings in the financial world over a possible impending recession, with a slew of polled retirement investors saying that they feel that one is imminent. But all of this might be unfounded.
Wells Fargo, in a recent statement, looked to assuage fears by assuring the public that the economy is in good standing and that there is no indication of financial turmoil on the horizon.
Wells Fargo models only make projections about a year in the future, and most recessions take much longer than a year to build up. Still, 11 percent of the people currently investing for retirement anticipate a market downturn this year, with an additional 40 percent thinking it will be here by next year.
A representative for the bank noted that they think the recession is “unlikely” and the economic expansion we’ve been experiencing is “longest expansion in the history of the U.S. economy” so that any downturn may seem like a bigger deal than it actually is.
Financial institution Morgan Stanley agrees, but is not quite as optimistic as Wells Fargo, putting their estimated odds for a recession at 15 percent for this year and 30 percent for next. It’s hard to predict, with new tariffs lowering the risk, and the Federal Reserves rate of interest which if lowered, will help the economy, but that may or may not happen any time soon, according to a representative from there.