Today is the first trading day of the new year. Attention this week will be focused on numbers for manufacturing, jobs and car sales. Ancora’s David Sowerby says the probability of a recession this year is about 50-50. So, should people be concerned when they hear the word recession?
“Recession yes or no, I’d say it’s not all or nothing or a binary event,” says Sowerby. “If we don’t get a recession, it’s not going to be significant economic growth. If we do get a recession, the expectation is that it’s mild. Most important for any household or small business is at least think about planning for keeping a little more cash on the sidelines and not overextending one’s debt.”
Sowerby says as a country, the US certainly always has challenges, but he says don’t bet against the ultimate ability of American consumers and small businesses to prevail even in the face of a potential mild recession.
