Volatility, Not Recession

ABOUT US : Collapsed
INVESTMENT STRATEGIES : Collapsed
FINANCING SOLUTIONS : Collapsed
INSIGHTS : Collapsed

Volatility, Not Recession

DOWNLOAD PDF
Drew Matus
JUL 29, 2022

We recommend

Global Risks 2022 Mid-Year Review

Relative Value & Tactical Asset Allocation

 

There is likely to be a lot of noise about “technical recession” as the real economy contracted for the second quarter in a row. Q2 GDP fell by an annualized 0.9% q/q after having contracted by an annualized 1.6% in Q1.1 However, a lot of what we are seeing is an inventory story related to supply-chain disruptions. Final sales of domestic product (GDP less private inventories) were up 1.1% after contracting 1.2% in the previous quarter and real consumer spending con tinued to grow.2